Monday, despite a reference rate of the Bank of the Republic of Haiti (BRH) displayed to 48,40 Gourdes for 1 US dollar, the foreign exchange market (banks and exchange offices) exchanged our national currency to 51.50 gourdes and 53 HGourdes for 1 US dollar, depending on the amount of the transaction, the availability in currency and the degree of speculation of economic agents. In a nervous market, some economic agents and modest household heads apprehend the depreciation of the gourde.

Let us recall that to the second quarter 2015, in its note on the Monetary Policy, https://www.haitilibre.com/article-13570-haiti-economie-ralentissement-de-l-activite-economique-au-2e-trimestre-2015.html (in french) BRH pointed to the "continued depreciation of the gourde n the second quarter 2015, but at a slower pace.

The depreciation of the gourde against the US dollar has continued but at a slower pace. After having closed the calendar year with a depreciation rate of 2.6% qoq, the exchange rate of the dollar against the gourde at the period end has increased to 47.17 gourdes to 13 March 2015, accusing an increase of 0.9% compared to its level in December 2014. The depreciation of the gourde has been contained because of monetary policy actions on the foreign exchange market and the recovery of private transfers in February 2015.

In fact, from January to March 2015 in order to reduce the pressure on the foreign exchange market, the Central Bank injected $ 22.9 million. As for private unrequited transfers received from abroad, they amounted to $241 million between January and February 2015."

Many analysts are worried about the policy of the Central Bank to want maintain strong gourde, by drawing on foreign exchange reserves of the Republic. For many, the equilibrium exchange rate and the trade balance can be restored only through boosting domestic production to reduce imports (4 billion import for 1 billion export). This high exchange rate is unfavorable to imports, forcing out more and more gourdes to obtain dollars, what can not remain without effect on the local economy and rising prices.

This depreciation of the gourde is the result of a set of combined factors including: strong dollar, speculation, caused by negative anticipation particularly by the uncertainty about the conduct of elections, which create pressure on the local currency market. A situation that will last as long, that reading of the economic situation in the country will not be more clear.

For the former Governor of the Central bank, Jean Fritz, the country is going through a turbulent zone, the State must must stop its intervention in the economy stressing that the interventionist role of the BRH reached its limits.

See also :

https://www.haitilibre.com/article-13570-haiti-economie-ralentissement-de-l-activite-economique-au-2e-trimestre-2015.html (in french)

https://www.haitilibre.com/en/news-12631-haiti-economy-concern-about-the-depreciation-of-the-gourde.html

PI/ HaitiLibre