JDR
11-15-2004, 04:19 PM
Thia is good news.
Budget set at RD$37 to US$1
The government reported today that it is building its 2005 budget around an
exchange rate of RD$37 to US$1. Technical Secretary to the Presidency
Temistocles Montas made the announcement today, but said that, nevertheless,
the government has not yet sent the bill to Congress, as reported in the
Listin Diario.
Montas said the decision to calculate the budget at a rate of RD$37 to US$1
was made after the tourism and free zone sectors asked the authorities to
intervene and graduate the appreciation of the peso that last week climbed
to RD$26 to US$1 at some exchange posts.
Large sectors of the economy that also depend on remittances are also being
affected by the peso's substantial climb since the Fernandez government took
office. While the peso has appreciated, however, the prices of goods and
services have been slow to drop, in part reflecting the skepticism of the
private sector regarding the new rate, the higher cost of doing business and
presumable attempts to net themselves a windfall from the higher yield on
sales.
According to the Central Bank's daily report, the US peso was commanding
RD$27.66 to US$1 today.
Speaking on the El Gobierno de la Manana radio program, Montas also
announced further increases to the power rates. He said that those who pay
for the service could expect rate increases of 30% next year.
Budget set at RD$37 to US$1
The government reported today that it is building its 2005 budget around an
exchange rate of RD$37 to US$1. Technical Secretary to the Presidency
Temistocles Montas made the announcement today, but said that, nevertheless,
the government has not yet sent the bill to Congress, as reported in the
Listin Diario.
Montas said the decision to calculate the budget at a rate of RD$37 to US$1
was made after the tourism and free zone sectors asked the authorities to
intervene and graduate the appreciation of the peso that last week climbed
to RD$26 to US$1 at some exchange posts.
Large sectors of the economy that also depend on remittances are also being
affected by the peso's substantial climb since the Fernandez government took
office. While the peso has appreciated, however, the prices of goods and
services have been slow to drop, in part reflecting the skepticism of the
private sector regarding the new rate, the higher cost of doing business and
presumable attempts to net themselves a windfall from the higher yield on
sales.
According to the Central Bank's daily report, the US peso was commanding
RD$27.66 to US$1 today.
Speaking on the El Gobierno de la Manana radio program, Montas also
announced further increases to the power rates. He said that those who pay
for the service could expect rate increases of 30% next year.