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4959: Re: devaluation of the gourde (fwd)
From: Martha O'Brien <mobfa1@scotus.sfcpa.edu>
It has occurred to me a number of times over the past year that
what is being referred to as the devaluation of the gourde may have
more to do with the strength of the dollar than the weakness of the
gourde. For example, when the gourde was more or less 15 to the
dollar, the French franc was about 5 to the dollar. When the
gourde was about 18 to the dollar, the French franc was about 6 to
the dollar. Although I have not checked recently, a visitor from
Europe just told me that the dollar is currently fetching about 7
francs. I will be the first to admit that I am far from an expert on
economics, but it seems to me that ratios of 5 is to 15 as 6 is to
18 as 7 is to 21 must mean something. Maybe it means only that
the French franc has been devalued at the same rate as the
gourde. However, my French friends refer to the strength of the
dollar, not the devaluation of the franc. As a matter of fact, when I
was in Haiti in May and June, my Haitian friends referred to the
strength of the dollar rather than the devaluation of the gourde.
Obviously, such semantics do not make the economic plight of
poor Haitians any less difficult--that is not my point. But it might
help put a less pessimistic spin on the situation--less pessimistic
and less, well, derogatory, I think. Sometimes the approach
seems to be almost "Geez, the country has got itself in such a
mess that the currency is going right down the tubes." Maybe--but
maybe there's another explanation.