#1616: Gourdes: Gill comments

[Robert Corbett <bcorbett@netcom.com>]

From: mark gill <markgill@midwest.net>


> The gourde is not tied to the dollar.  It floats based on the levelof
> remittances and the level of deficit spending by the government of Haiti.
> Printing more gourdes, absent economic growth (i.e. the same amount of
> dollars), means more gourdes to the dollar and hence a devaluating gourde.
> Which is what we have now as the government starts running the printing
> presses in  order to finance public works projects in advance o fthe
> elections.
>
> The exchange rate is merely the cost of a dollar/yen/euro if you are
> holding gourdes, or visa versa.  If you produce a surplus of something
> (gourdes), its price (exchange rate) goes down.