Jamaica's foreign exchange black market

In: The journal of development studies: JDS, Band 31, Heft 1, S. 17-43

Abstract

Under controls initially imposed in 1954, the exchange black market in Jamaica grew to about US$ 1.7 billion of transaction in value per year by 1990. This market contributed importantly to the operation of Jamaica's underground economy during the 1980s. The liberalising of the foreign exchange market and elimination of capital controls in 1991-92 undermined the economic logic favouring black markets. These changes may induce the transfer of a large part of previously underground financial activities into the legally-recorded economy. (DSE/DÜI)