Central Bank reserves continue downward
SD. The international reserves of the Central Bank continue to decrease, according to the monetary statistics this are released by the same entity on its internet website.
As of 27 January 2014 the reserves were US$3.841 billion, which represents a fall of US$554 million with respect to the levels of December 2013, which was US$4.386 billion. In 27 days the Central Bank lost 12.4% of its reserves.
In the meantime, the Dominican peso, after an 0.7% depreciation in its value against the dollar during the month of January, at the end of operations on 4 February, the exchange rate for the sale of dollars was RD$43.1 among banking entities and RD$43.09 at the exchange houses.
However the Central Bank considers these movements to be normal. Frank Fuertes, the director of the International Department of the Central Bank, says that “the reduction in January of the gross international reserves is due to a combination of the withdrawal of government deposits and the timely interventions in the exchange market, when the exchange rate was undergoing abrupt changes not consistent with the fundamentals of the economy”.
Also, with reference to the recent cutbacks in the monetary incentives in the United States economy announced by the Federal Reserve last Wednesday, Fuentes offers the security of “we do not expect such strong reactions in the emerging economies” of fleeing capital and volitility in the exchange rate.
In September 2013, the same as o n other occasions, the reserves of the Central Bank were increased by
US$475 million which came from a loan from the Inter American Development Bank to the central government.
Category: DR News |