Prime Minister Andrew Holness says the government is paying attention to developments with the exchange rate.

There have been concerns about the continuous slide in the value of the Jamaican dollar against its US counterpart.

Mr. Holness in addressing the issue says he, like others, is concerned.

However he states that the government’s policy is that there must be a flexible exchange rate which means the dollar can go up or down.

The Prime Minister adds that the government will not interfere by setting price, but will set rules for a free market to operate to find the right value for the currency.

He states that in 2013 the Net International Reserves (NIR) went dangerously low creating a problem as this is US dollar funded.  However Mr. Holness says today the country’s rainy day fund is at more than 3 billion u-s dollars, the highest ever.

He says the economy is going in the right direction and all the fundamentals are correct. He cites low interest rates, low inflation and unemployment below ten per cent.

Mr. Holness said there are persons who are betting against the dollar, but expressed confidence of a return to stability in the foreign exchange market.

Mr. Holness is reassuring the public that the government is paying attention, but highlights the long term goal of making the economy strong.

He says the focus is on building the reserves to withstand shocks, such as hurricanes, or rising oil prices.

He was speaking at a meeting last night (August 12) where Robert Miller was presented as the candidate for St Catherine South East.