NewsWhore
08-24-2009, 04:30 PM
The International Monetary Fund (IMF) will transfer US$275.3 million to the Dominican Republic, according to a report from the Central Bank. The transfer comes just as the Dominican government opens talks with the international organization regarding the signing of a possible agreement that would expedite the disbursements.
According to the Central Bank, during the week they will receive an additional assignment of US$177.2 million in Special Drawing Rights (SDRs) from the IMF, equal to US$275.3 million. These will bolster the international reserves. "With the entry of these resources, the gross international reserves are more than US$2.7 billion and the liquid reserves are more than US$1.5 billion," said the Central Bank.
The bank explained that the IMF is not imposing any type of limitation for the use of the money, and therefore they are freely available to the Central Bank. The funds would be injected into the exchange market.
The bank does not feel the money would spur inflation, rather that it would have a neutral effect on the domestic monetary offer. "It is worthy of note that this transfer does not increase the foreign debt of the Dominican Republic, because it is not an international loan, but rather a contribution of capital. Nor is it conditioned to the signing of an IMF accord."
The SDRs are used by the IMF to complement the reserve assets of member countries. Its value is based on a basket of monies of the principle world economies. Actually, the SDRs are equal to US$1.55361. The decision to assign this additional amount of SDRs is done in fulfillment of the agreements reached in the last G-20 meeting held in London in April of this year. In this meeting, the distribution of SDRs equal to US$250 billion among the IMF member countries was agreed to so that these economies would have the resources that would permit them to satisfy their need for liquidity in the actual context of the global crisis being felt by the world.
The IMF stipulates that the money permits the member nations of the IMF, among these the DR, to be in a better position to face their needs for hard currencies in the near future.
With this increase in its reserves, the Central Bank strengthens its position in foreign currency and increases the availability of resources to face up to the needs of the balance of payments, contributing to maintain relative stability in the exchange rate and dissipate possible undesirable pressures on the currency market, according to information obtained from Central Bank sources.
More... (http://www.dr1.com/index.html#2)
According to the Central Bank, during the week they will receive an additional assignment of US$177.2 million in Special Drawing Rights (SDRs) from the IMF, equal to US$275.3 million. These will bolster the international reserves. "With the entry of these resources, the gross international reserves are more than US$2.7 billion and the liquid reserves are more than US$1.5 billion," said the Central Bank.
The bank explained that the IMF is not imposing any type of limitation for the use of the money, and therefore they are freely available to the Central Bank. The funds would be injected into the exchange market.
The bank does not feel the money would spur inflation, rather that it would have a neutral effect on the domestic monetary offer. "It is worthy of note that this transfer does not increase the foreign debt of the Dominican Republic, because it is not an international loan, but rather a contribution of capital. Nor is it conditioned to the signing of an IMF accord."
The SDRs are used by the IMF to complement the reserve assets of member countries. Its value is based on a basket of monies of the principle world economies. Actually, the SDRs are equal to US$1.55361. The decision to assign this additional amount of SDRs is done in fulfillment of the agreements reached in the last G-20 meeting held in London in April of this year. In this meeting, the distribution of SDRs equal to US$250 billion among the IMF member countries was agreed to so that these economies would have the resources that would permit them to satisfy their need for liquidity in the actual context of the global crisis being felt by the world.
The IMF stipulates that the money permits the member nations of the IMF, among these the DR, to be in a better position to face their needs for hard currencies in the near future.
With this increase in its reserves, the Central Bank strengthens its position in foreign currency and increases the availability of resources to face up to the needs of the balance of payments, contributing to maintain relative stability in the exchange rate and dissipate possible undesirable pressures on the currency market, according to information obtained from Central Bank sources.
More... (http://www.dr1.com/index.html#2)