2026-02-06
DEVELOPMENT 4
TPS protections remain in place following Judge Reyes' February 2 injunction against
the Trump administration's revocation order. The Trump administration has indicated
intent to appeal to the Supreme Court. The Atlantic Council warned that US deportation
flights arriving in Cap-Haitien could overwhelm local capacity risking destabilization of
one of the country's most stable regions particularly given the vital textile sector based
there. The House passed H.R. 6504 extending HOPE and HELP programs on January
11 with Senate action still pending.
The exchange rate demonstrates remarkable stability at approximately 131 HTG per
USD despite the political crisis. The seven-day range is 130.69 to 131.21 with
twelve-month depreciation of only 0.53 percent. Trading Economics forecasts first
quarter end rate of 130.73 and twelve-month rate of 128.86. This stability persists
despite political turmoil likely supported by stable remittance flows of 4.1 billion USD
annually and BRH intervention.
Humanitarian indicators show 1.4 to 1.5 million displaced persons and approximately 2
million facing acute food insecurity. The electoral budget requires 137 million USD with
only half funded. The Atlantic Council noted that Cap-Haitien is home to Haiti's vital
textile sector which the US Congress recently voted to continue supporting. Diaspora
voting procedures remain unpublished despite CEP authorization making electoral
February 06, 2026
timelines increasingly uncertain.
The combination of TPS protection currency stability and pending HOPE HELP
extension provides relative economic continuity during political transition. However the
humanitarian crisis continues to deteriorate with displacement and food insecurity
reaching critical levels. The funding gap for electoral operations creates practical
constraints on transition timelines regardless of political agreements. The textile sector
concentration in Cap-Haitien makes that region vulnerable to deportation impacts.