May prices climb 4.99%; no reason behind dollar’s rise
Santo Domingo.- “There’re no fiscal or monetary conditions to explain the dollar’s exchange rate’s recent movement,” said Central banker Hector Valdez Albizu Wednesday, and noted that prices climbed 4.99% in May, “which ensures they adhere to the Central Bank’s inflation target of 5% for this year.”
He said that to May, the government had maintained a fiscal deficit level much lower than expected in this year’s budget, so government spending wouldn’t pressure the demand for currency.
He also noted that on the monetary side, the monetary aggregates grow in line with the Monetary Program’s provisions, and credit has been so gradually streamlined since the stimulus measures announced by the release of the bank reserve, that private credit in local currency grew by 5.7% so far this year.
“I think the exchange rate’s movement in the last few days is due to the combination of two factors: first, a transient decrease in the supply of currency flow to the economy given the international environment, and the other, important currency purchases made by large customers,” which Valdez affirms is expected to stabilize in the short term.
Category: DR News |