The Haitian gourde hit a record low against the U.S. dollar in March 2019, compounding the financial hardship already being felt by millions of Haitians. The currency’s depreciation accelerated as the country’s political crisis deepened and investors and businesses grew increasingly reluctant to commit capital to an uncertain economic environment.
At its weakest point, the gourde was exchanging at rates that would have been unthinkable just a year earlier. Since Haiti imports the vast majority of its basic consumer goods, including rice, fuel, and cooking oil, the weak currency translated directly into higher prices at the market for everyday Haitians.
The Bank of the Republic of Haiti attempted to stabilize the currency through limited interventions in the foreign exchange market, but the central bank’s reserves were limited. Economists warned that without a resolution to the political crisis, further depreciation was likely.
Remittances from the Haitian diaspora, particularly from the United States, Canada, and France, provided a critical lifeline for many families struggling with rising prices. Analysts estimated that remittances accounted for a significant share of Haiti’s GDP, underscoring the importance of the diaspora to the country’s economic survival.