BRH Monetary Policy Note (2020-Q2)
Summary — This report by the Bank of the Republic of Haiti (BRH) analyzes monetary policy during the first quarter of fiscal year 2020 (October-December 2019). It discusses the economic context, policy decisions, and performance indicators of the banking system.
Key Findings
- The Haitian economy was significantly impacted by socio-political crises during October and November 2019.
- The BRH lowered interest rates on BRH bonds in mid-November to ease monetary conditions.
- The BRH did not sell foreign currency during the quarter due to the relatively stable value of the national currency.
- The banking system showed stability, but with a relative decline in asset quality and profitability ratios.
- The ratio of dollar deposits to total deposits decreased, indicating a slowdown in dollarization.
Full Description
This note provides an overview of Haiti's monetary policy during the first quarter of fiscal year 2020. It begins by outlining the global and domestic economic environment, noting the impact of socio-political crises on economic activity. The report then details the monetary policy decisions taken by the BRH during the quarter, including interest rate adjustments and interventions in the foreign exchange market. Finally, it assesses the performance of the banking system, highlighting key indicators such as asset quality, profitability, and deposit trends. The document concludes with perspectives on the economic outlook and future policy directions.