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US dollar breaks RD$47 to 1 barrier

For the first time in over 10 years, those wanting to purchase 1 US dollar need to cough up at least RD$47 Dominican pesos.

The Central Bank reported that the official rate banks are buying US dollars is 46.91 pesos per one US dollar. To buy a US dollar at a bank the reference price from the Central Bank was RD$47.01, as of 7 February 2017.  This rate had increased to RD$47.03 by Wednesday, 8 February 2017.

During a meeting with the Association of Commercial Bank, the governor of the Central Bank Hector Valdez Albizu said that the amount of US$ dollars entering the Dominican economy had been increasing. He said in 2016, US$24.3 billion dollars entered the Dominican currency market, and gross international reserved closed at a record of US$6,047.4 million and US$6,046.7 million the international net reserves.

What’s the explanation on the US dollars scarcity?

With the peso depreciating to RD$47 to US$1, the Association of Industries of Herrera and Province of Santo Domingo (AEIH) demanded a clear explanation from the authorities concerning the continuing scarcity of US dollars circulating in the free market.

The president of AEIH, Antonio Taveras said that businessmen are having serious difficulties in securing hard currency to meet their international commitments, replacing inventory and paying invoices in US dollars.

“We wonder how can an economy that received US$24.3 billion last year, a US$1.6 billion increase over US$ receipts in 2015, could now all the sudden be rationing the sale of dollars,” asked Taveras. “They put us on waiting lists and then they sell us only minimum amounts,” he said.

“My distinguished colleagues at the Central Bank, if you say the economy is generating sufficient hard currency to honor our nation’s commitments and that there is a US$6 billion reserve, then what is causing the scarcity?” he asked.

He said that neither banking sector, nor the exchange markets in general can meet the present demand for US dollars.

There is criticism that some banks are offering dollars at RD$49, that is two pesos more than the spot quote at the Central Bank.

Circe Almánzar, executive vice president of the Dominican Republic Association of Industries (AIRD) said companies are currently experiencing one week delays in purchasing needed dollars and banks are reporting waiting lists of companies wishing to secure greenbacks.

Source: DR1, Elnacional, Acento

Feb 10, 2017

Category: DR News |

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Last updated January 21, 2018 at 12:31 AM
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