In todays DR1 News:
Conditions exist for peso recovery
Investment banker Bear Stearns published a Sovereign Latin America Update, which brings optimistic tidings for the ailing Dominican peso and the economy in general. The report estimates that the peso has recovered 5% of its value in the past month, and that the economy may have already hit its lowest point, setting the scene for a possible upturn.
The US-based institution awards the DR a Ba2/B+ rating, and attributes the peso?s recent upward trend to the imminent IMF agreement, the restructuring of troubled banks Baninter, Bancr?dito, and Mercantil; US$1-billion CD issuance to soak up excess peso liquidity; increased tourism flows; robust remittances; higher exports and lower imports.
The report says that tourism for the first half of the year has increased 21% compared to the same period last year, translating to 1.7 million foreign tourists. Tourist revenues are cited as having expanded by more than 18%, from US$1.36 billion in the first half of 2002 to US$1.61 billion for the same period in 2003.
Remittances were up 2.8%, to US$1.08 billion from US$1.05 billion in the first half of 2002. Bear Stearns says that remittances have become a key contributor to the country?s external accounts and represented a vital source of foreign exchange during the crisis period.
Likewise, exports grew by 8.6% for the first half of 2003 to US$2.8 billion. Free zone exports were up 5.7% and non-free zone exports 21.7%, boosted by the weaker peso. Imports contracted 17.2% during the same period, causing the merchandise trade deficit for the first half year to fall to US$1.2 billion for the first half of 2003 from US$1.9 billion for the same period in 2002.
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I quoted it since it won't be around tomorrow and this thread may still be.
I think the Peso will NOT recover further and maybe even hit a new low against the dollar but after the economy will move in a positive direction. In my opinion as the tourism and economy of this country goes, so goes Real Estate.
This can possibly be the bottom but, I also bought Intel at 29 thinking it couldnt get lower and it was such a steal. Hitting the exact bottom is a tough guess but when things look the worst may be a good sign.
Escott
Conditions exist for peso recovery
Investment banker Bear Stearns published a Sovereign Latin America Update, which brings optimistic tidings for the ailing Dominican peso and the economy in general. The report estimates that the peso has recovered 5% of its value in the past month, and that the economy may have already hit its lowest point, setting the scene for a possible upturn.
The US-based institution awards the DR a Ba2/B+ rating, and attributes the peso?s recent upward trend to the imminent IMF agreement, the restructuring of troubled banks Baninter, Bancr?dito, and Mercantil; US$1-billion CD issuance to soak up excess peso liquidity; increased tourism flows; robust remittances; higher exports and lower imports.
The report says that tourism for the first half of the year has increased 21% compared to the same period last year, translating to 1.7 million foreign tourists. Tourist revenues are cited as having expanded by more than 18%, from US$1.36 billion in the first half of 2002 to US$1.61 billion for the same period in 2003.
Remittances were up 2.8%, to US$1.08 billion from US$1.05 billion in the first half of 2002. Bear Stearns says that remittances have become a key contributor to the country?s external accounts and represented a vital source of foreign exchange during the crisis period.
Likewise, exports grew by 8.6% for the first half of 2003 to US$2.8 billion. Free zone exports were up 5.7% and non-free zone exports 21.7%, boosted by the weaker peso. Imports contracted 17.2% during the same period, causing the merchandise trade deficit for the first half year to fall to US$1.2 billion for the first half of 2003 from US$1.9 billion for the same period in 2002.
-=-=-=-=
I quoted it since it won't be around tomorrow and this thread may still be.
I think the Peso will NOT recover further and maybe even hit a new low against the dollar but after the economy will move in a positive direction. In my opinion as the tourism and economy of this country goes, so goes Real Estate.
This can possibly be the bottom but, I also bought Intel at 29 thinking it couldnt get lower and it was such a steal. Hitting the exact bottom is a tough guess but when things look the worst may be a good sign.
Escott
