20918: Walton: RE: 20885: Munsell: RE: 20824: Jepiem: Dollars Plummets in Ha iti in one day? (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: "Walton, Robert" <robert.walton3@us.army.mil>

That the value of the gourde has risen is a reflection of the "free market"
at work.  With the presence of foreign military and civilian officials
requiring Haitian goods and services, the prices for these goods and service
had risen to meet the initial high demand.  This resulted in a rise in the
comparative value of the gourde versus the other currencies.  Because the
market is self-correcting, the value of the gourde will likely drop, then
stabilize, as the needs for services and goods by foreign currency spenders
stabilizes.  The downside is that the cost of Haitians goods will have
increased while the average Haitian's wages have not.

Bob