Monetary Policy Note, 2nd Quarter of Fiscal Year 2025-2026

This monetary policy note from the Banque de la République d'Haïti (BRH) provides an overview of the global and Haitian economic environment during the second quarter of fiscal year 2025-2026 (January-March 2026). Globally, geopolitical tensions, particularly in the Middle East, led to a downward revision of growth projections by the IMF and increased oil prices, impacting major economies. Domestically, Haiti faced a contraction of 1.1% in economic activity, exacerbated by internal shocks, population displacement, and alarming levels of food insecurity affecting 5.83 million people.

The report details the state of public finances, which recorded a deficit partially financed by BRH advances, and the external sector, showing a widening trade deficit despite resilient migratory remittances. The BRH maintained a prudent monetary policy, absorbing excess liquidity and intervening in the foreign exchange market to stabilize the Gourde. The banking sector demonstrated resilience with increased assets and net profits, although the gross loan portfolio contracted. The BRH plans to continue its efforts to contain inflation, stabilize the exchange rate, and support economic recovery, including initiatives for SMEs and regional financial inclusion.