Note on monetary policy for the 3rd quarter of fiscal year 2021-2022

(April – June 2022) of the Bank of the Republic of Haiti (BRH) reveals, among other things, that the Government spends more than it collects revenue.

As of June 30, 2022, budgetary and cash operations resulted in a deficit of more than 34 billion (34,045.3 billion gourdes) which was partially financed by the BRH to the tune of 30,616.7 billion against 15,844, 20 billion in March 2022.

However, the financing of the BRH remains within the limit set in the economic and financial governance pact relating to the management and execution of public expenditure for the fiscal year 2021-2022 in which Michel Patrick Boivert undertakes for the financial year 2021-2022 not to exceed 46 billion Gourdes against 49 billion the previous year. Minister Boivert points out that of the 30 billion in financing from the BRH, 20 billion is attributable to the subsidy of petroleum products.

For the end of the 2021-2022 fiscal year, the BRH estimates that the economic outlook "[...] remains mixed and is subject to a set of factors both internally and externally. The prolongation of the war in Ukraine should lead to an intensification of the increase in the price of oil and basic food products as well as the persistence of supply chain disruptions at the global level.

Similarly, high inflation and the risks of recession or economic slowdown that weigh particularly on the United States, Canada and the Euro Zone, could affect the disposable income of Haitian migrants and consequently private transfers without counterpart, the main component the supply of currencies on the foreign exchange market. The rise in prices in our main trading partners could also continue to fuel inflationary pressures, in particular through the increase in the prices of imported products considered in the consumption basket.

Internally, the continued deterioration of the business climate due to the security situation will continue to negatively affect economic activity and price formation through the blockage of certain production and marketing circuits. Added to this are the risks of potential damage that could occur in the agricultural sector during the hurricane season, which began on June 1, 2022 [...]"

Download the note from the BRH 3rd quarter 2021-2022 (PDF 14 pages) : https://www.haitilibre.com/docs/Note-de-Politique-Monetaire-3eme-trim-2022.pdf

HL/ HaitiLibre