20888: Holmstead: Dollars Plummet in Haiti (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: John Holmstead <cyberkismet4@yahoo.com>

Are there any economists out there who can help figure
what the heck is going on with the gourde? The gov't
did not order any edict changing the exchange rate so
how could the dollar have fallen so quickly? From over
40 gourdes two weeks ago to 22.5 gourdes today. Does
that mean that the dollar was artificially higher
because people took dollars out of circulation before
Aristide's departure? Does that mean they have now
flooded the market with dollars again forcing the
gourde higher in value? What does this mean to the
great many poor folks who depend upon their loved ones
abroad to help by sending US dollars to them? Prices
for basic goods and transportation have not fallen
accordingly so who makes the greatest profit during
this period?

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