NewsWhore
08-26-2008, 04:00 PM
Fears for a potential economic downturn are motivating some investors to liquidate their Central Bank certificates of deposit. Listin Diario reports that this is one of the reasons why the US dollar has appreciated. The current dollar to peso exchange rate is on average RD$35.20 per US$1. For the first time since 2003 there has been a decrease in certificates of deposit issued by the Central Bank, which now total about RD$6 billion. This shift has caused the Central Bank to increase interest rates. Accordingly, at the beginning of the year a certificate stock in the Central Bank totaled RD$191.4 billion. This decreased to RD$185.6 billion by 21 August, a 3% decrease totaling RD$5.8 billion. Between August and December RD$35 billion in certificates will expire and economists are concerned that there will be fewer renewals.
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More... (http://www.dr1.com/index.html#4)