In recent days, the exchange rate is subject to rapid fluctuations that leave net users and other citizens in the country indifferent. Now it takes at least 90 gourdes for one US dollar. Participant in the program "Guest of the Day" on Radio Vision 2000, the former governor of the Bank of the Republic of Haiti (BRH) Fritz Alphonse Jean has issued his point of view on the depreciation of the gourd.
"We must look at the accelerated depreciation of the gourd from two angles. First, the BRH communicates on its website a budget deficit that it funded 6.7 billion gourdes. This is not the real deficit since the central bank takes into account only cashed checks, "said economist Fritz Alphonse Jean. For the former governor, the budget deficit is currently about 20 billion gourdes.
As an explanation, the economist referred to the commitments to be honored by the state. "Between wage arrears, on the one hand, and the purchase of equipment and office supplies on credit, on the other hand, the commitments of the Haitian State for this year represent nearly 20 billion gourdes" , revealed former Governor Fritz Alphonse Jean.
The economist said that if the state honors its commitments, it is the foreign exchange market that will pay the price. At that time, the budget deficit will become more substantial and the financing of this deficit by the BRH will lead to the creation of new gourde notes. When there are too many gourds in circulation in the economy, the value of the local currency only goes down further on the foreign exchange market.
In case the state refuses to respect its commitments, says the economist, it is the commercial banks that will pay the price. On this point, Fritz Alphonse Jean has made it clear that companies or traders who sell goods on credit themselves have commitments to commercial banks or other financial institutions of the place.
Then, the second angle under which one must analyze the depreciation of the gourd, according to Fritz Alphonse Jean, refers to the situation of general instability prevailing in the country. "All economic actors are skeptical. We are in a precarious situation, a situation of chaos, "says the former governor of the central bank.
Admittedly, the fluctuation of the exchange rate causes inflation, but a vertiginous increase of the prices of the products is noted on the Haitian market. For former Governor Fritz Alphonse Jean, if people set the price of products as they see fit, it is because the Ministry of Trade and Industry does not do its job. However, the economist says that traders who have to deal with the fluctuation of the exchange rate are forced to adjust the prices of their products. Exchange rate fluctuation is occurring at a rapid pace; the trader is in uncertainty because he does not know, when he will get supplies, how many gourds it will take for a dollar.