Annual Report on Exchange Arrangements and Exchange Restrictions 2005


International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2005
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(Position as of December 31, 2004)

Status Under IMF Articles of Agreement
Article VIIIDate of acceptance: December 22, 1953.
Exchange Arrangement
CurrencyThe currency of Haiti is the Haitian gourde.
Other legal tenderThe dollar circulates freely and is generally accepted in Haiti. Several gold coins have been issued that are legal tender but do not circulate.
Exchange rate structureUnitary.
Managed floating with no predetermined path for the exchange rateAlthough the exchange rate is determined by market forces in the exchange market, the Bank of the Republic of Haiti (BRH) uses its foreign exchange reserves frequently to meet foreign exchange expenditures of the government, and the exchange rate is influenced by the amount of these transactions. The BRH operates a dollar clearinghouse. Commercial banks quote buying and selling rates for certain other currencies based on the buying and selling rates of the dollar in exchange markets abroad. The market is dominated by banks, with money changers following this market.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketNo.
Arrangements for Payments and Receipts
Prescription of currency requirementsn.a.
Payments arrangements
Bilateral payments arrangements
Regional arrangementsHaiti is a member of the CARICOM.
Administration of controlNo.
International security restrictionsn.a.
Payments arrears
Controls on trade in gold (coins and/or bullion)
Controls on domestic ownership and/or tradeResidents may hold and acquire gold coins in Haiti for numismatic purposes.
Controls on external tradeThe BRH has the exclusive right to purchase gold domestically and to export gold in the form of coins, mineral dust, or bars. Exports of gold require, in addition, prior authorization from the Ministry of Commerce and Industry (MCI) and the Ministry of Finance and Economic Affairs, as well as an endorsement from the MCI, before customs clearance. However, commercial imports of articles containing a small amount of gold, such as gold watches, are freely permitted and do not require an import license or other authorization.
Controls on exports and imports of banknotesNo.
Resident Accounts
Foreign exchange accounts permittedThese accounts may be credited with export proceeds, with transfers from abroad received by exchange houses, or with receipts from maritime agencies and nongovernmental organizations.
Held domesticallyYes.
Held abroadYes.
Accounts in domestic currency held abroadn.a.
Accounts in domestic currency convertible into foreign currencyYes.
Nonresident Accounts
Foreign exchange accounts permittedYes.
Domestic currency accountsYes.
Convertible into foreign currencyYes.
Blocked accountsn.a.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for importsNo.
Documentation requirements for release of foreign exchange for imports
Preshipment inspectionInspection of imports is performed by the Société Générale de Surveillance under the Program of Verification of Imports.
Import licenses and other nontariff measuresNo.
Import taxes and/or tariffsThere are four standard tariff rates—zero, 5%, 10%, and 15%. Several goods have special tariff rates—gasoline, 57.8%; and cement, rice, sugar, dry onions, dry mushrooms, dry truffles, and vegetables with a dry hull, 3%. A domestic turnover tax is charged on the c.i.f. value plus import duties. There are two specific rates: (1) G 0.82 a kilo for grated, powdered, or melted cheese and (2) G 0.71 a kilo for dry garlic. All imports, except for inputs used by certain export industries, are subject to a 5% verification fee. Haiti is a member of the CARICOM; however, trade negotiations between Haiti and CARICOM were suspended since the change of government in March 2004.
State import monopolyNo.
Exports and Export Proceeds
Repatriation requirementsNo.
Financing requirementsNo.
Documentation requirements
Preshipment inspectionYes.
Export licensesNo.
Export taxesNo.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersInformation is not available on the transfer of pensions, family maintenance, and alimony.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsNo.
Restrictions on use of fundsNo.
Capital Transactions
Controls on capital transactionsNo.
Controls on capital and money market instrumentsNo.
Controls on derivatives and other instrumentsn.a.
Controls on credit operationsNo.
Controls on direct investmentNo.
Controls on liquidation of direct investmentNo.
Controls on real estate transactionsNo.
Controls on personal capital transactionsNo.
Provisions specific to commercial banks and other credit institutions
Lending locally in foreign exchangeLending may not exceed 50% of liabilities in foreign exchange.
Differential treatment of deposit accounts in foreign exchange
Reserve requirementsA reserve requirement ratio of 31% applies to both gourde- and dollar-denominated deposits at commercial banks, and a ratio of 19.5% applies to both gourde- and dollar-denominated deposits at savings and housing banks.
Credit controlsLending may not exceed 50% of liabilities in foreign exchange.
Open foreign exchange position limitsAn open foreign exchange position limit of 8% of capital and reserves applies.
On resident assets and liabilitiesYes.
On nonresident assets and liabilitiesYes.
Provisions specific to institutional investorsn.a.
Other controls imposed by securities lawsn.a.
Changes During 2004
No significant changes occurred in the exchange and trade system.

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