Dominican Republic taps US$200M to halt dollar’s surprising jump
Santo Domingo.- The Central Bank will start exchange market injecting between US$150 and US$200 million today Tuesday to halt a surprising jump in the dollar rate, now above RD$45.
Central banker Hector Valdez Albizu announced that in its last meeting the Monetary Board also approved a 2-point increase to the banks’ reserve requirements, which will roll back their liquidity by around RD$14.0 billion.
He aid the measure aims to reduce liquidity so no one can claim that the climb in the exchange rate results from increased demand from a glut of money.
In a press conference, Valdez called the rate’s behavior atypical because there was a record income from tourism (around US$5.6 billion) last year and around US$22.0 billion in general.
The official said other causes behind the inexplicable situation is that oil has been falling, which means there’s less pressure to the exchange market.
February 10, 2015
Category: DR News |