Liberal foreign exchange: How Honduranian exporters fight for their future
Liberal foreign exchange: How Honduranian exporters fight for their future
tegucigalpa (from verónica castro)- The current decline in Honduranian exports has significant effects on the local economy and is related to the restrictive dollar controls that from Honduran government was introduced over the central bank of the country (BCH). These measures tighten the difficulties for producers who urgently rely on foreign raw materials.
Again
Exports of Honduran goods, including agricultural products such as coffee, have dramatically decreased since 2023. According to the economist Liliana Castillo, exports have dropped by $ 899 million, which is due, among other things, to falling coffee production rates and falling prices for essential export goods. The coffee is particularly affected, the sales of which have dropped by 11.4 % in the current harvest time 2023-2024.
Economic framework and their challenges
economists have found that the declining exports, coupled with a reduced external financing freedom and a decrease in the returns, lead to falling dollar availability and a decline in international reserves in Honduras. This situation is still exacerbated by the increasing importing for products such as vegetables and beans, which Honduras increasingly obtained from neighboring countries
The votes of the entrepreneurs and the government
The President of the Chamber of Commerce and Industry of Tegucigalpa, Daniel Fortín, expressed concerns about the ability of the producers to obtain urgently needed raw materials. He emphasized that the restricted dollar availability could lead to a serious food shortage, since most food products are dependent on materials acquired abroad.
Inside, the Minister of Agriculture and Livestock, Laura Suazo, emphasized that the government endeavors to invest in agricultural production and to increase the harvests. Nevertheless, the challenges, especially for small producers who need support to stay competitive, are getting bigger. She predicted a production of over 10 million quintal of staple foods, despite the expected declines in the support.
future prospects and necessary measures
The recovery of export numbers seems unlikely as long as the dollar restrictions apply and the economic uncertainty persists. Armando Urtecho, the director of the Honduran Council (CoHep), pointed out that the security situation and lack of incentives for companies to invest here are a major hurdle. The challenges of land invasions and the uncertainty in case law increase these problems.
The analysis of the current economic situation in Honduras shows that without fundamental reforms and an improvement in the framework conditions for producers and exporters, the Honduran economy could get into an even deeper crisis. Access to dollars is not only a question of liquidity, but also crucial for the entire economic stability of the country.
- Nag