Economy and Finance

Here is a picture of Haiti Minister of the Economy and finance, Yves Romain Bastien

A detailed analysis of US spending, however, raised questions about how much of those funds were truly necessary to hold elections, and how much simply served to enrich foreign organizations. As per University of Virginia professor Robert Fatton, the desire of the U.S to withdraw $2 million from the 'election basket' might be a sign that it is prepared to delegitimize the forthcoming elections if the results do not coincide with its interests.

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In 1979, fearing an attack of the African Swine Fever, the Haitian Government was convinced by the United States Agency for International Development (USAID) to eradicate their entire stock of Creole pigs. In a move that many say showed the Government's woeful disconnect from matters affecting the peasantry in Haiti, the pigs, which had taken on the role of investments for the poor, were eradicated and replaced by an American stock that never did acclimate to Haitian living.

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Here is a picture of the Centre de convention et de documentation, BRH.

On Tuesday, November 17, 2015, President Michel Martelly and Governor Charles Castel inaugurated the convention center and documentation of the Bank of the Republic of Haiti (BRH) located at the corner of Paved streets and Quai in the capital city and unveiled a monument for the victims of the earthquake of January 2010. The center has been built over an area of 6,000 square meters as per earthquake and par cyclonic resistance norms at a cost of $14.5 million. The center with a capacity to accommodate 1,500 people will employ state of the art technologies and consists a multifunctional exhibition room, an area of documentation, a dressing room for artists for musical and theatrical performances and a restaurant. The President expressed his warm congratulation to the Board of the BRH and other actors involved in the construction. Prime Minister Evans Paul and other dignitaries from the social and business sectors were present during the occasion.

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Here is a picture of Haiti Central Bank Governor, Mr. Charles Castel. He is not concerned Gourde is losing Value.

Charles Castel, Bank of the Republic of Haiti Governor, is responding to worries the Haitian gourde is losing value too quickly. According to him, "There is a gross reserve of $2 billion (US), and $1.2 billion net ". in the state's reserve"

He reports "indicators are not too alarming (but also) . . . we cannot be complacent to say everything is fine . . ." Is this reassuring to Haitians withdrawing money and sending it overseas?

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It was not long that you needed 40 Haitian gourde to get one U.S. dollar. This is expected to increase even more.

The exchange rate for the Haitian Gourde per U.S. Dollar had remained unchanged at 47.20 between May 2014 and April 2015. The same currency exchange rate was averaged at 31.89 to a U.S. Dollar from 1994 until 2015 with a maximum of 50.00 (in February 2003) and a minimum of 14.85 (in August 1996). However, over dependence on import from countries like, the Dominican Republic and United States have resulted excessive outflow of foreign currency reserve, because the exporters of foreign countries accept payment only in their own currency or currency of their choice. Inflow of foreign currency in a country is mainly generated through its exports. Unfortunately, the imports in Haiti have always overshadowed Haitian exports. As a result, higher demand for U.S Dollar than its supply will eventually push its price higher. In consequence, the current exchange rate 48.75 gourdes for a dollar may soon surpass 50.00. If that happens, that would be the steepest devaluation of the Haitian gourde in past 15 years. To some extent, unstable economical and political situations, dysfunctional Parliament are also some of its contributing factors.

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Despite recent news that the value of the Haitian gourde was depreciating at a rapid rate, Governor of the Central Bank, Charles Castel, remains convinced that the dollar will not touch 50 gourdes by the end of 2014, though the month is still young, and the dollar is already at 47 gourdes. His reason for thinking this is that December and the season represent a time when foreign remittances will be high. Apart from certain steps being taken by the bank to stop the process, the call has gone out for a ramp up in the production of local goods to reduce the import bill.

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Launch of the Information Office on the Credit (BIC), a new State structure for the recovery of investment and credit in Haiti.

BIC has for objective to intervene to support the Government's development strategy for the micro, small and medium enterprises.

Prime Minister Lamothe, to stimulate growth of small and medium business investments, inaugurated the Credit Information Bureau (BIC), a new state agency. Announcement of BIC occurred at the Karibe Convention Center with officials of the Republic of Haiti Bank, Inter-American Development Bank, and International Finance Corporation present.

Lamothe said BIC will ". . . promote private sector development, and strengthen the foundation for . . . sustainable economic growth, through democratization and expansion of access to Production Credit."

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While Haiti has seen some positive shifting in the course of the rate of inflation over the last few months, with the recorded rate, as captured and reported by the Banque de la République dHaiti, at 3.4% in November of 2013, anything lower than the rate at the period following 2010 can be counted as a blessing. The cost of living was then so high that, compared to Americans, Haitians were paying more than three times the amount for a gallon of milk and $5 more for a gallon of gas.

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As the rate of inflation in Haiti continues to slow down, blessedly miles away from the ghastly 42.46% recorded in September 2003 at its present 4.20%, eyes shift to how this good tide affects the country's industries. The percentage for the food, beverages and tobacco industry is 3.2%, with lowered prices on items like bread, green and dried peas, ground provisions like potatoes and yams, and citrus fruits such as lemons, grapefruits and oranges. Meanwhile, the health industry reported a 3.7% rate of inflation, while energy, water and rent housing reported 5%.

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Here is an interesting picture where Haitian currency is being transported via Bourette.

Haiti has long been known to be the poorest of countries in the Western Hemisphere. Still, its GDP growth in 2012 was reported at 1.3% making its annual GDP approximately $13 billion. One of Haiti's problems is that it has a higher inflation rate than other low-income countries in a similar circumstance. It also has to battle a lack of investment opportunities and repeated disasters that cripple the economy. In 2012, the country listed revenues of $1.35 billion, with expenses of $1.446 billion.

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