NewsWhore
08-11-2010, 03:30 PM
The governor of the Central Bank, Hector Valdez Albizu, has denied that the authorities are planning to stimulate an increase in the exchange rate in order to bring about a shift in the economy. Valdez Albizu indicated that the exchange rate has been stable throughout the year, barely experiencing 2% depreciation, less than the accumulated inflation rate to July, which was 3.22%. He maintained that this is a clear reflection that the exchange rate has performed below the inflation rate.
In another issue, the governor stressed that there are no monetary or financial reasons that should alter the stability of the exchange rate. He noted that normally in the months of August and September, for seasonal reasons, there is a slight increase in the demand for dollars, which is considered normal. Nonetheless, the Central Bank governor said that this year the tourism sector showed a significant 6.16% increase in the month of July, which should mean a greater flow of hard currency for the country. He reminded reporters that according to the International Monetary Fund (IMF), the exchange rate is tied to the fundamentals of the Dominican economy, indicating that this IMF opinion strengthens the position that there should not be any worries about the behavior of this variable.
Valdez Albizu warned, emphatically, that anyone trying to create nervousness in the exchange market with absurd and baseless statements that are far from reality, could be contributing, consciously or not, to major losses for holders of hard currencies. He reported that the Central Bank has more than US$2 billion in net reserves, enough to guarantee a stable exchange rate and that the banking entity would make use of them if it were necessary.
In paid advertisement, the Central Bank today reported that the fuel indexing to inflation announced by the government should represent no more than a 0.62 percentage points increase in inflation. He says that accumulated inflation from 2007-2009 is 20.36%, which would be spread throughout 13 weeks. The plan is to add RD$0.72 per week to prices of premium gasoline, RD$0.64 to regular gasoline, RD$0.44 to regular diesel and RD$0.27 to premium diesel over the 13 week period.
More... (http://www.dr1.com/index.html#5)
In another issue, the governor stressed that there are no monetary or financial reasons that should alter the stability of the exchange rate. He noted that normally in the months of August and September, for seasonal reasons, there is a slight increase in the demand for dollars, which is considered normal. Nonetheless, the Central Bank governor said that this year the tourism sector showed a significant 6.16% increase in the month of July, which should mean a greater flow of hard currency for the country. He reminded reporters that according to the International Monetary Fund (IMF), the exchange rate is tied to the fundamentals of the Dominican economy, indicating that this IMF opinion strengthens the position that there should not be any worries about the behavior of this variable.
Valdez Albizu warned, emphatically, that anyone trying to create nervousness in the exchange market with absurd and baseless statements that are far from reality, could be contributing, consciously or not, to major losses for holders of hard currencies. He reported that the Central Bank has more than US$2 billion in net reserves, enough to guarantee a stable exchange rate and that the banking entity would make use of them if it were necessary.
In paid advertisement, the Central Bank today reported that the fuel indexing to inflation announced by the government should represent no more than a 0.62 percentage points increase in inflation. He says that accumulated inflation from 2007-2009 is 20.36%, which would be spread throughout 13 weeks. The plan is to add RD$0.72 per week to prices of premium gasoline, RD$0.64 to regular gasoline, RD$0.44 to regular diesel and RD$0.27 to premium diesel over the 13 week period.
More... (http://www.dr1.com/index.html#5)