NewsWhore
06-02-2006, 03:10 PM
During May 2006, US$2.3 billion were in deposit in Dominican multiple banks, a record-breaking sum according to CLAVE weekly newspaper, which also comments that at a moment when financial markets in the United States and around the world are expecting a renewed hike in the US Federal Reserve's interest rate, the banking market in the DR has lowered its rates for deposits in foreign currency. This rate reduction is not a reflection of the "dollarization" of Dominican economy that began with the liberalization of the foreign currency deposit market in the 1990s and reached its peak in January 2004 when approximately 33% of total deposits were in hard currency. Since then, the level of hard-currency deposits has averaged 27%, and dropped as low as 23% in August 2005, evidently reflecting the strength acquired by the Dominican peso. CLAVE also indicates that loans in foreign currency reached their peak in what it calls "Black May" 2003, when the total was US$2.18 billion.
Link To Original Article (http://www.dr1.com/index.html#4)
Link To Original Article (http://www.dr1.com/index.html#4)