Peso depreciating fast
According to the Central Bank, the rate of depreciation of the peso has accelerated at the closing of the first quarter of the year, estimated at 2.07%. On the last working day of March, the 28th, the United States dollar was at RD$49.3001, whereas the previous year closed at RD$48.2993 for each dollar.
Over the last 12 months the rate of devaluation of the peso to the American dollar has been at 4.1% but the major part has been this year, with deprecation at 1.39% over the first quarter.
The reason, according to economists, is that the Banks are not selling a high amount of dollars and there is not sufficient US currency circulating to meet the demand of businesses.
According to government sources, businesses and lenders in the Dominican economy are holding on to US dollars for speculative reasons and that this has led to increased pressure on the peso.
But the tensions surrounding the exchange rate are not just related to foreign currency as the net international reserves were at US$8.05 billion at the end of February 2018 which is the highest amount of savings in dollars which the country has ever seen.
Source: DR1, DiarioLibre
April 4, 2018
Category: DR News |