WHAT do you trust when the world feels like it’s teetering? Inflation remains sticky. Interest rates are unpredictable. War and political tensions keep shifting global priorities. And across many developing nations, including Jamaica, currency depreciation is not a matter of if, but when.
In times like these, investors are not just looking for growth. They are looking for security with strategy. And the most resilient place to start? The US dollar.
Is the US economy perfect? No. But the dollar doesn’t dominate because of perfection, it dominates because of trust, liquidity, and global demand.
The USD remains the world’s reserve currency. That means when financial markets shake whether in Europe, Asia, or right here in the Caribbean, global investors turn to the dollar. Central banks stockpile it. Sovereign wealth funds rely on it. And multinational corporations settle their deals in it. The greenback, for better or worse, still sets the tone for global capital.
So, while the headlines may question America’s political and fiscal health, institutional investors are still moving billions into USD-denominated assets and that tells you everything you need to know.
Your Jamaican Dollars Aren’t Losing — They’re Leaking
You don’t always feel the erosion. It happens slowly. But each time the Jamaican dollar slips 2 per cent, 5 per cent, 10 per cent, your purchasing power quietly shrinks. Imported food, fuel, gadgets, travel — they all inch up. You may be earning interest locally, but if inflation and devaluation are higher than your return, you’re not gaining. You’re falling behind.
A USD investment isn’t just about returns; it’s a currency hedge. It safeguards your money’s value against the slow leak of devaluation. It’s not a luxury. It’s protection.
Whether you’re starting with US$100 or US$100,000, the key is access to structured guidance. From USD fixed-income options to customised portfolios, there are tailored strategies for every level of investor. This isn’t about how much you have; it’s about how well you position what you do.
Smart investing starts with one move. One conversation. One shift from saving to building.
“But What About FX Costs?”
Yes, moving from JMD to USD comes with foreign exchange fees. But let’s put it in context.
If the Jamaican dollar slides 6 per cent this year (which is entirely plausible) that’s a silent tax on everything you own in local currency. In comparison, the cost to convert to USD is a one-time, predictable move and often, it’s far cheaper than enduring year-over-year devaluation.
You’re not losing in conversion. You’re locking in protection.
Act Before the Rate Window Closes
There’s another key reason to act now: interest rates are still elevated. That gives you the rare chance to lock in premium USD yields for the medium to long term.
“But what if rates drop?” you may ask.
Well, then you’ve won twice: you locked in high returns when they were available and when rates drop, the value of those positions rises. Smart investors don’t react to the headlines, they anticipate the cycle.
This Isn’t About Fear. It’s About Foresight
The strongest investors aren’t the ones who chase the highest returns. They’re the ones who invest with clarity, structure, and purpose.
So, whether you’re planning for retirement, building a legacy, or simply securing your lifestyle, don’t wait for another currency slide or market shock. Move forward with confidence, clarity, and guidance from a team that knows how to navigate volatility with precision.
Tenagne Thompson is manager, personal financial planning at Sterling Asset Management. Sterling provides financial advice and instruments in US dollars and other hard currencies to the corporate, individual and institutional investor. Visit our website at www.sterling.com.jm
Feedback: If you wish to have Sterling address your investment questions in upcoming articles, e-mail us at: [email protected]
Tenagne Thompson.
