Haiti: Maxime Charles Explains Liquidity Problem in Banking System
- Friday, December 09, 2011 12:04 PM
Written by The Sentinel Staff |
PORT-AU-PRINCE, Haiti (defend.ht) - On Thursday the President of the Professional Association of Bankers (PAB) explained the liquidity problem within the banking system to be cash for work programs that are paying in checks. He suggested Haitians adopt modern forms of money handling.
Maxime Charles, President of the PAB, a day earlier said there was not a liquidity problem but on this day said there was a problem and described it as an imbalance.
Speaking on Radio Metropole, Charles said the currency coming in and the currency going out are out of line because of the reconstruction.
"It's an imbalance that we have here because of a lot more money coming in and entering the economy and people on the side that are benefiting want to receive this money in the form of cash."Conille, Charles, Liquidiy
"And I must tell you also, there were a lot of programs that came into the country to help, programs like 'cash for work' and all the things like that, them also they were paying people time after time in checks and these people come to the banks and they say 'give me cash'.
Maxime Charles says the banks were tendering out so much U.S. currency into the Haitian economy that a hold was put on U.S. bills. Charles did not clarify the reasons why the bills are returned to the banks.
Economist and President of the Haitian Association of Economists (AEH), Eddy LabossiÃ¨re explained a possible reason why the bills aren't being returned is because Haiti does not export many products but instead imports. There for much of the currency leaves to other countries. But LabossiÃ¨re also said that significant amounts of dollars entering from the Haitian Diaspora and international donors should offset.
Modern Money Handling
Maxime Charles would like to see Haitians adopt a new lifestyle of using electronic means of purchasing and exchanging. Charles says that businesses need to begin to accept credit cards and consumers need to use them.
It would be a difficult transition for Haitians because of a higher frequency of person to person exchanges as oppose to business to consumer. Many Haitian are independent businesses themselves. Whether selling goods or offering services self-employment is the lifestyle, a lifestyle that is dependent on cash.Related 12.09.2011: Haiti: PM Conille Recognizes Differing Views on State of Banks
Related 12.08.2011: Haiti Finance Minister Georges to Appear before Senate Commission Friday
Related 12.05.2011: Haitian Banks Report Mysterious Loss of U.S. Currency
Related 11.29.2011: Haitian Senate to Hold Hearing on Martelly Phone and Money Transfer Tax
Related 11.25.2011: Rising Suspicions of Corruption in the Haitian Presidency
Related 10.18.2011: $26 Million [US] Missing from Haiti's National Fund for Education
Source: Metropole, AHP, Le Matin