NewsWhore
09-23-2008, 03:30 PM
Central Bank Governor Hector Valdez Albizu said yesterday when interviewed on Channel 11's Telematutino that Dominican expatriates and Dominicans with deposits in US banks have begun to transfer their money to Dominican banks. Years back, Dominicans had transferred their savings to the US banks, not trusting the local financial market. But now the reverse is happening. Commercial banks in the DR are benefiting from capitals that are fleeing uncertainty in the US. Valdez Albizu said there has also been an increase in the sale of Central Bank bonds. He said the Central Bank has taken advantage of the situation to strengthen its reserves. He commented the influx in US dollars would force a marked appreciation of the Dominican peso.
Central Bank Governor Hector Valdez Albizu says that the Dominican Republic will not sign a new agreement with the International Monetary Fund, as reported in El Caribe. Valdez said the government is aware it needs to control its spending, nevertheless. He also said that the present social subsidies are not sustainable. He attributed the present current account deficit to the increase in the fuel bill, electricity subsidy, and increased cost of imported foods. He said that the electricity subsidy alone will cost the government US$1 billion this year, up from a budgeted US$650 million.
In recent days some of US's major investment banks have been on the verge of collapse as a result of financial problems and a mortgage crisis that began more than a year ago. The White House is asking Congress to allow the government to takeover US$700 billion in bad debts. The bailout plan, if approved by Congress, would give Washington broad power to buy bad mortgages of any American financial institution in the next two years.
In related news, Lisandro Macarrulla, president of the National Business Council voiced his concern on the US crisis. Macarrulla believes the tight squeeze in the US could affect the DR, as it is the country's most important trading and financial partner, and because of the high volume of remittances that come from Dominicans in the US. Macarrulla called for preventive domestic measures. He forecast that a continued US crisis could mean a loss of jobs for the DR. He said apparel export manufacturing companies are feeling the pinch already.
More... (http://www.dr1.com/index.html#3)
Central Bank Governor Hector Valdez Albizu says that the Dominican Republic will not sign a new agreement with the International Monetary Fund, as reported in El Caribe. Valdez said the government is aware it needs to control its spending, nevertheless. He also said that the present social subsidies are not sustainable. He attributed the present current account deficit to the increase in the fuel bill, electricity subsidy, and increased cost of imported foods. He said that the electricity subsidy alone will cost the government US$1 billion this year, up from a budgeted US$650 million.
In recent days some of US's major investment banks have been on the verge of collapse as a result of financial problems and a mortgage crisis that began more than a year ago. The White House is asking Congress to allow the government to takeover US$700 billion in bad debts. The bailout plan, if approved by Congress, would give Washington broad power to buy bad mortgages of any American financial institution in the next two years.
In related news, Lisandro Macarrulla, president of the National Business Council voiced his concern on the US crisis. Macarrulla believes the tight squeeze in the US could affect the DR, as it is the country's most important trading and financial partner, and because of the high volume of remittances that come from Dominicans in the US. Macarrulla called for preventive domestic measures. He forecast that a continued US crisis could mean a loss of jobs for the DR. He said apparel export manufacturing companies are feeling the pinch already.
More... (http://www.dr1.com/index.html#3)