One of Haiti’s leading economist, Enony Germain said that he supports the central bank measures to start paying transfers in Gourdes instead of in US dollars. He also called for the “dedolarization of the economy”.

In Haiti, most hotels, car rental agencies and other major businesses charge US dollars.

Late last week Haitian officials ordered banks and transfer houses to pay international transfers in foreign currency if the beneficiary receives the funds on his bank account (in US dollars) or in gourdes if the beneficiary requires payment at any point of service initially represents a definite disadvantage for the beneficiaries. 

Germain said that, if the beneficiaries then want to buy the dollar, they will pay it at the average acquisition rate which is higher than the central bank’s rate.

The economist believes, that despite everything, this order will have an effect on the gourde. It will have an effect on the informal foreign exchange market, which is generally supplied by transfer offices, which refuse to pay in dollars to sell them wholesale at a rate higher than that of other players. This informal market usually contributes to the increase in the exchange rate.Continue reading.

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