NewsWhore
10-28-2010, 03:50 PM
Central Bank Governor Hector Valdez Albizu reports that the peso has stabilized in relation to the dollar after last week's depreciation. Valdez mentioned that the average cost of buying a dollar was RD$37.30. The selling rate is RD$37.32.
"The Central Bank is not betting on a fixed rate, but rather on a system of an administrated, flexible exchange market, and what interests us is the relative stability in the exchange rate, that moves according to the conditions of the market, without unnecessary jumps that do not respond to monetary, banking, financial or tax questions", he said, as reported in Diario Libre.
He stated that according to the latest data he had, the exchange rate went down three or four points and will continue downward due to the inflow of capital from abroad as of 15 November when the tourism season kicks off again. December is also a peak month for influx of hard currency with the arrival of vacationing Dominican expats. Some US$500 million is expected to enter, said the Governor of the Central Bank.
Valdez Albizu spoke at a meeting held between the technical mission of the International Monetary Fund and the assistant director for the Western Hemisphere, Rodrigo Valdes, and the senators from the Hacienda Commission who are seeking to coordinate some technical assistance for training legislators on economic issues.
Valdez Albizu commented interest rates could increase if there is an overheating of the economy. The GDP is growing at 7.6%, he said.
He made it clear that the Dominican economic growth rate has surpassed the IMF's expectations, with the private sector reacting positively. He commented that public investment was accelerated in the first half, due to the funds that were disbursed in the last quarter of 2009, which were US$1.0 billion.
He said that private credit was increasing at 18%, double the nominal output growth rate. "This means that the economy is moving very fast," he said. He mentioned free zones, commerce, construction, farming, tourism and local manufacturing as sectors showing performance improvements.
On the issue of the recapitalization of the Central Bank, Valdez Albizu said that he was going to obtain RD$14 billion and they gave him RD$6 billion and that before December he would be obtaining RD$10.4 billion.
More... (http://www.dr1.com/index.html#8)
"The Central Bank is not betting on a fixed rate, but rather on a system of an administrated, flexible exchange market, and what interests us is the relative stability in the exchange rate, that moves according to the conditions of the market, without unnecessary jumps that do not respond to monetary, banking, financial or tax questions", he said, as reported in Diario Libre.
He stated that according to the latest data he had, the exchange rate went down three or four points and will continue downward due to the inflow of capital from abroad as of 15 November when the tourism season kicks off again. December is also a peak month for influx of hard currency with the arrival of vacationing Dominican expats. Some US$500 million is expected to enter, said the Governor of the Central Bank.
Valdez Albizu spoke at a meeting held between the technical mission of the International Monetary Fund and the assistant director for the Western Hemisphere, Rodrigo Valdes, and the senators from the Hacienda Commission who are seeking to coordinate some technical assistance for training legislators on economic issues.
Valdez Albizu commented interest rates could increase if there is an overheating of the economy. The GDP is growing at 7.6%, he said.
He made it clear that the Dominican economic growth rate has surpassed the IMF's expectations, with the private sector reacting positively. He commented that public investment was accelerated in the first half, due to the funds that were disbursed in the last quarter of 2009, which were US$1.0 billion.
He said that private credit was increasing at 18%, double the nominal output growth rate. "This means that the economy is moving very fast," he said. He mentioned free zones, commerce, construction, farming, tourism and local manufacturing as sectors showing performance improvements.
On the issue of the recapitalization of the Central Bank, Valdez Albizu said that he was going to obtain RD$14 billion and they gave him RD$6 billion and that before December he would be obtaining RD$10.4 billion.
More... (http://www.dr1.com/index.html#8)