During his participation in the program “Kisa nou vle” presented by journalist Rudy Sanon on Facebook, yesterday June 26, 2024, economist Etzer Émile explained the main reasons explaining the scarcity of the American dollar in Haiti. He also proposed solutions to remedy this alarming situation.
The origin of scarcity
Port-au-Prince, June 27, 2024.- According to Etzer Emile, the scarcity of the US dollar on the foreign exchange market is largely due to the pressure exerted on the gourde since General Prosper Avril authorized the creation of dollar bank accounts in Haiti in 1989.
According to him, the Haitian state has never succeeded in stabilizing the national currency against the dollar. This instability is explained by the lack of wealth creation, a business environment unfavorable to foreign investments, and the adoption of an import economy to guarantee the survival of the population.
Other key factors in the scarcity of the dollar in Haiti
For Etzer Émile, three main factors are at the origin of the scarcity of the dollar in Haiti: international transfers, the informal foreign exchange market and the availability of the dollar at the Central Bank. Only 30% of the dollars collected from international transfers are available in cash at the Bank of the Republic of Haiti (BRH), while the rest is recorded in an account. This situation reduces the availability of the dollar on the foreign exchange market, despite annual transfers of 4.5 billion US dollars, twice as much as the national budget estimated at 2 billion dollars.
The informal foreign exchange market also has a significant impact on the scarcity and price of the dollar in commercial banks. Banks are forced to buy dollars on the informal market at high prices, and sellers can hoard these dollars to create artificial scarcity.
A majority without access to financial services
The economist also points out that most Haitians do not have access to financial services. According to the 2018 FinScope Haiti study, only 11.5% of adults in Haiti have a bank account, and 84% of adults are served by some sort of financial service. In 146 municipalities, there are no more than 30 bank branches to meet the needs of the population.
Suggestions for stabilizing the local currency
To stabilize the local currency, Etzer Émile proposes the establishment of a digital bank to simplify banking transactions, encourage exports, and adopt a public policy in favor of tourism and foreign investments. He concludes by stating that it is necessary to have a single currency, whether the gourde or the dollar, to stabilize the Haitian economy.
Judelor Louis Charles
Beef Sale Info (VBI)
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