Haiti’s Central Bank Governor concerned about depreciation of local currency

PORT AU PRINCE, Haiti, CMC – Governor of the Bank of the Republic of Haiti (BRH) Jean Baden Dubois, has expressed concern about the deterioration of the national economy in the wake of the depreciation of the local currency – the Gourde.

High inflation

Speaking at a recent press conference, Dubois said in April, inflation surpassed 17.7 per cent and coupled with political unrest, he believes that these factors, among others, have contributed to the country’s instability.

The governor said a series of administrative and regulatory measures, direct monetary policy measures and incentives will be taken to stabilize the exchange rate on the market local.

Interest rate adjustment

In addition, he announced an interest rate adjustment for BRH bonds –  91-day bonds will increase from 12 to 22 per cent 28-day bills from 8 to 14 per cent  and 7-day bills from 6 to 10 per cent a measure which he says will have positive spin-offs for the clients of the commercial banks.

Regarding the pressure on the US dollar and its scarcity, he announced an injection of US$150 million on the foreign exchange market by September 2019, including US$25 million on June 4 and US$15 million on June 6.

But despite these measures, the governor says he  fears that the socio-political situation is further deteriorating and hindering the achievement of the objectives  – based on this he has also called on politicians to compromise to find a consensual solution to the crisis and to promote macroeconomic stability essential for economic growth in Haiti.