NewsWhore
07-04-2008, 03:30 PM
Manuel Diez Cabral, president of the Association of Industries of the Dominican Republic (AIRD), again is urging the government to take measures to correct the rising current account deficit in the balance of payments. He called the deficit "unbearable unless actions are taken," as reported in Hoy. He said that the nation can not wait until 16 August to put in place the needed corrections without risking affecting the present macroeconomic stability. President Leonel Fernandez begins a second term on 16 August.
Diez Cabral explained that the deficit will soon be at 7% of the Gross Domestic Product. Diez Cabral says that measures taken by the Central Bank have made doing business more expensive. Among the measures is an increase in interest rates that makes financing more expensive. Other measures to reduce the money in circulation and curtail inflation have been to focus on restricting banking liquidity and selling international reserves. Diez Cabral says that for a country to have a strong currency it needs to export more than it imports, which is the case of Brazil, not the DR. For 2007, the country registered a current account deficit of US$2.2 billion that was compensated by US$2.6 billion in foreign investment. The current account deficit, nevertheless, has considerably increased for 2008.
More... (http://www.dr1.com/index.html#8)
Diez Cabral explained that the deficit will soon be at 7% of the Gross Domestic Product. Diez Cabral says that measures taken by the Central Bank have made doing business more expensive. Among the measures is an increase in interest rates that makes financing more expensive. Other measures to reduce the money in circulation and curtail inflation have been to focus on restricting banking liquidity and selling international reserves. Diez Cabral says that for a country to have a strong currency it needs to export more than it imports, which is the case of Brazil, not the DR. For 2007, the country registered a current account deficit of US$2.2 billion that was compensated by US$2.6 billion in foreign investment. The current account deficit, nevertheless, has considerably increased for 2008.
More... (http://www.dr1.com/index.html#8)