#1776: The Gourde's depreciation : Blanchet comments

[Robert Corbett <bcorbett@netcom.com>]

From: Max Blanchet <MaxBlanchet@worldnet.att.net>

The gourdes has, over the last 15 years,

lost 260% of its value relative to the dollar

according to the following formula:

Depreciation = [(18Gdes - 5Gdes)/5Gdes]x100

On a yearly, compounded basis, its depreciation

has been about 6.6%.

This depreciation is related to inflation in the

country which peaked at well past 50% in

1993-1994 at the height of the embargo.

To the GOH's credit, the inflation rate has been

reduced to less than 10%.

The impact of this inflation on the buying power of the

"average" Haitian consumer -  who spends about 50%

of his/her income on food -  remains severe.