Haiti currency depreciation, 60 Haitian Gourdes for a U.S Dollar

Updated December 28, 2015 8:10 AM

In spite of reassuring statements and intervention of the Haitian Central Bank, the Haitian Gourde kept sliding against U.S Dollar. Today, (December 17, 2015) US$ 1:00 is equivalent to 56.73 Haitian Gourde. The value of one country's currency depreciates mainly on its economic condition which is again vulnerable to domino effect or cumulative effect of several factors like economic fundamentals, political instability, foreign trade imbalance, etc. To understand the severity of the problem few practical examples would be good enough.

Suppose, in 1995, a well-to-do Haitian family had a monthly income of 20,000 HTG. With the prevailing exchange rate of 1995, the family had an income of $1,142.85 in 1995, but in 2015, the same income of 20,000 HTG with the current exchange rate, would be much less, $352.53 only. Similarly, an amount of $1000,000 kept in a bank in 2010 would be presently reduced to $675,000 only. A reduction in one country's value of money is good for an economy which has more export than import, but Haiti heavily depends on import. Its import bill will be more expensive than ever.

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Haiti currency depreciation, 60 Haitian Gourdes for a U.S Dollar

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