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computer translation:
Dollar shortage persists
Posted on:
September 25, 2019
By EMILIO ORTIZ Economía@elnacioal.com.do
e-mail:redaccion [@] elnacional.com.do
The president of the Dominican Federation of Merchants (FDC) confirmed today that there is a shortage of dollars in the market that is affecting that sector, since at the beginning of last week operations were made to purchase the currency at 52.50 pesos, but At the end of the week, the purchase of a dollar had risen to 53.00 pesos.
Iván de Jesús García said the 100 million dollar injection into the market did not impact the upward trend, so he called on the Central Bank to place between 200 and 300 million dollars in the market to face the upside.
Similarly, he asked the regulatory body to replicate the experience of the past year, when before an upward movement of the exchange rate, he called that entity to a meeting, in which also the organizations of importers affiliated to it participated, in the that the channeling of dollars to that sector was planned.
"The Central Bank did not sell us dollars, but served as a channel for commercial banks to sell the currency to merchants according to their needs," he said in conversation with El Nacional.
The commercial leader said that in 30 days the exchange rate increased between 65 to 135 points.
He recalled that previously financial intermediaries sold up to 10 thousand dollars a day per person, so that companies sent five employees to these entities, so that with staggered purchases they could accumulate the necessary foreign currency to finance their operations.
However, he said that this quota was reduced to one thousand dollars a day per person, so to accumulate 15 thousand dollars necessary for the payment of an invoice, “you must mobilize 15 employees which causes an economic and time disorder in the activities of the companies".
De Jesús García said that there is a case of merchants who acquired merchandise with an exchange rate of 52 dollars, but now to replenish inventory they must pay it above 53 dollars, a situation that in his opinion “will cause a transfer of that difference to final cost impacting price levels. ”
He believed that if an escalation in the rise in prices of products of wide consumption was unleashed, inflation targets set by the authorities could be compromised.
Hence their call to the Central Bank to convene them to address the issue of shortage of dollars.
ONE POINT:
Strategy
The Central Bank had announced a strategy that began on Monday, September 16, to place more than US $ 100.0 million in the market, in coordination with commercial banks, taking into account its reserves of US $ 7,700 million
https://elnacional.com.do/denuncian-persiste-escasez-de-dolares/
Dollar shortage persists
Posted on:
September 25, 2019
By EMILIO ORTIZ Economía@elnacioal.com.do
e-mail:redaccion [@] elnacional.com.do
The president of the Dominican Federation of Merchants (FDC) confirmed today that there is a shortage of dollars in the market that is affecting that sector, since at the beginning of last week operations were made to purchase the currency at 52.50 pesos, but At the end of the week, the purchase of a dollar had risen to 53.00 pesos.
Iván de Jesús García said the 100 million dollar injection into the market did not impact the upward trend, so he called on the Central Bank to place between 200 and 300 million dollars in the market to face the upside.
Similarly, he asked the regulatory body to replicate the experience of the past year, when before an upward movement of the exchange rate, he called that entity to a meeting, in which also the organizations of importers affiliated to it participated, in the that the channeling of dollars to that sector was planned.
"The Central Bank did not sell us dollars, but served as a channel for commercial banks to sell the currency to merchants according to their needs," he said in conversation with El Nacional.
The commercial leader said that in 30 days the exchange rate increased between 65 to 135 points.
He recalled that previously financial intermediaries sold up to 10 thousand dollars a day per person, so that companies sent five employees to these entities, so that with staggered purchases they could accumulate the necessary foreign currency to finance their operations.
However, he said that this quota was reduced to one thousand dollars a day per person, so to accumulate 15 thousand dollars necessary for the payment of an invoice, “you must mobilize 15 employees which causes an economic and time disorder in the activities of the companies".
De Jesús García said that there is a case of merchants who acquired merchandise with an exchange rate of 52 dollars, but now to replenish inventory they must pay it above 53 dollars, a situation that in his opinion “will cause a transfer of that difference to final cost impacting price levels. ”
He believed that if an escalation in the rise in prices of products of wide consumption was unleashed, inflation targets set by the authorities could be compromised.
Hence their call to the Central Bank to convene them to address the issue of shortage of dollars.
ONE POINT:
Strategy
The Central Bank had announced a strategy that began on Monday, September 16, to place more than US $ 100.0 million in the market, in coordination with commercial banks, taking into account its reserves of US $ 7,700 million
https://elnacional.com.do/denuncian-persiste-escasez-de-dolares/