Dollar’s climb leads to Central Bank warning, strict oversight
Santo Domingo.- The dollar’s climbing rate as of late has the Central Bank issuing warnings of strict surveillance, and announced the auctioning of papers on August 27 to raise RD$1.5 billion, and a possible intervention to defuse the exchange market’s volatility.
Thus far this year the exchange rate has stood at just above RD$40 per dollar, which puts the Government’s inflation targets at risk, although as the Central Bank reiterated on Wednesday, there are neither monetary nor fiscal reason to explain the climb.
In the National Budget the Government’s estimated dollar rate is RD$41.60 per US$1, but as of August 21, it’s sold as high as RD$42.60, with predictions of RD$43-to-1 by yearend already surfacing.
“This situation is questionable because although it is understood that there’s a shortage of foreign exchange faced with a sustained demand, it’s nothing out of this world. It has been moving very fast,” said Carlo Pla, president of the moneychangers grouped in Adocambio.
Peso’s yield dwindles
The Regional Sustainable Economic Strategies Center (CREES) affirms the peso’s diminishing returns, both nominal and real instruments in local currency deposits, is the main reason for the decline.
Category: DR News |