Haiti's Sharp Currency Appreciation Will Threaten Exporters

• Fitch Solutions believes the rapid appreciation of the Haitian gourde over recent weeks will create significant headwinds to exports, private consumption, and government revenues over the coming months.
• While the factors underpinning the gourde's rise are not entirely clear, the government is most likely supporting the currency in an attempt to control elevated inflation.
• The core view is that the gourde is unsustainable at current spot rates, although the government could choose to take a more active role in managing the exchange rate to sustain its value over the coming months.

(Source: Fitch Solutions)