WESTERN BUREAU:
THE BLACK market in foreign currency trading is still thriving in some areas of the island, years after the Government took steps to eliminate this informal activity.
Undetermined sums of foreign currency, mainly United States dollars, are being traded daily on the streets of Montego Bay, St. James. Checks by The Gleaner revealed that these markets also exist in Lucea, Hanover and Negril, Westmoreland.
In 1994, the Government sought to eliminate a thriving foreign currency black market, by introducing a network of licensed cambios throughout the island.
However, in Montego Bay the black market has slowly crept back into the open, with individuals who call themselves "dollar dealers" openly buying and selling varying amounts of foreign currency on the streets trading in U.S. and Canadian dollars and the Pound Sterling.
Commanding officer for St. James, Superintendent Newton Amos, admitted that the police in the parish are aware of the foreign currency black market, which has been operating in Montego Bay for several years. However, he told The Gleaner that he is uncertain of how these dollar dealers were breaking the law.
THE LAW
"I checked the law and I don't know if what they are doing is wrong," said Supt. Amos in a telephone interview. "At one time we picked up quite a number of them, and when we checked the relevant people they couldn't tell us what to charge them with."
However, last week the Bank of Jamaica (BoJ) informed The Gleaner that anyone dealing in foreign currency without a licence from the BoJ was doing so illegally. "You must be a licensed foreign exchange dealer in order to deal in foreign currency," said Jacqueline Morgan, the public relations officer at the BoJ. She pointed out that the authorised foreign exchange dealers includes financial institutions, cambios, and the bureau-de-change facility in some hotels.
Part 1V, Section 22A of the Bank of Jamaica Act stipulates that no person shall buy, sell, borrow or lend foreign currency or foreign instruments in Jamaica unless he is an authorised dealer. Persons found guilty under this Act in a Resident Magistrate's court can be fined up to $50,000 or sentenced to up to one year in prison or both. A conviction before a Circuit Court could lead to a fine of up to $100,000 or up to five years in prison or both.
NOTHING TO SPEAK ABOUT
The illegal activity has eluded the Cambio Dealers Association executive member, Earle Harriott, who insisted that the foreign exchange black market is a thing of the past. "If it exists it's really nothing to speak about. The market is absorbing practically all the foreign exchange right now, so a black market would be almost negligible," said Mr. Harriott, two-time president of the association.
In the meantime, Superintendent Amos noted that the police are examining the issue carefully to determine if the activity is illegal, and would take the appropriate steps if necessary.
