Central Bank Monetary Policy: The Bank of the Republic of Haiti's fiscal policy is the reduction of expenditures and investment in infrastructure to repair the damage caused by hurricanes and the great earthquake that shook Haiti in 2010. Its monetary policy includes the trading of shortterm Treasury bills. The Haitian government received USD $8.9 M in the form of IMF Special Drawing Rights (SDR's) and a total of USD $13.1 M by the IMF.

1. Report Completed: 12 September 2011
In the Name of Allah the Beneficent the Merciful
Topic: Currency Report 2011
Currency: Haitian Gourde
Central Bank Monetary Policy: The Bank of the Republic of Haiti's fiscal policy is the reduction
of expenditures and investment in infrastructure to repair the damage caused by hurricanes and
the great earthquake that shook Haiti in 2010. Its monetary policy includes the trading of short-
term Treasury bills. The Haitian government received USD $8.9 M in the form of IMF Special
Drawing Rights (SDR's) and a total of USD $13.1 M by the IMF.
Exchange Rate (@US $1.00): 40.3500 (2 Sept 2011)
Predictive Analysis: The Haitian economy has been hard hit by natural disasters and external
money-supply forces. The Hatian gourde is in a weak position for several reasons. Firstly, the
central bank's monetary policy reflects that of the US central bank. Secondly, the Haitian
central bank is owned by the American bank Citibank and its credit is issued by France's BNP
Paribus through the national Haitian credit bank. This explains why the central bank's
monetary policy is similar to that of the US central bank. Thirdly, the Haitian economy is
buoyed by external aid and debt. Infrastructure is most critical and important, and must be
invested in. However, the rebuilding efforts have been slow and stagnant—in spite of the
hundreds of millions of US dollars raised for that purpose. This sluggish rebuilding effort will
prove to further slow down and exacerbate the Haitian economy. Prices will continue to rise, and
unless the rebuilding process expedites, the GDP of the Haitian economy will dramatically drop
in the long-term. The Haitian gourde is in danger of experiencing hyper-inflation.