Haiti - Economy : The BRH announces several monetary decisions
He explained that the analysis of certain key indicators made it possible to note in particular :
- A rise in the exchange rate, in recent weeks, after a significant decline, 70 gourdes to 64 gourdes for a dollar and a long period of stability over the last 6 months, which has not been transmitted in the price movements;
- A relatively high rate of inflation (14.4% year-on-year in October 2017) http://www.haitilibre.com/en/news-22821-haiti-economy-very-slight-slowdown-in-the-rise-in-monthly-inflation.html
- An increase of approximately 3 billion gourdes (compared to September 2017), of the net credit stock of the BRH to the State;
- An excess liquidity situation despite an increase in outstanding BRH bonds by 17% compared to September 2017.
Thus, on the basis of the evolution of the economic and financial situation and after deliberation, it was decided:
1) to increase the reserve requirement ratio on liabilities denominated in foreign currencies by 1.5 percentage points;
2) To keep interest rates unchanged on the BRH bonds;
3) To intervene in the foreign exchange market for a fraction of routine interventions designed to smooth exchange rate fluctuations;
4) To adopt other measures concerning the regulation and the monitoring framework that will be communicated shortly.
To be continued...