To reverse the trend of the devaluation of Peso at this time is not an easy job (I don't like to use the word "impossible"). There are so many issuses involved, much more complicated than we can imagine or can be implemented.
Any country with strong exportation will have sufficient money reserved in foreign reputable banks. cases before such as Japan, Taiwan. Recent case such as China. Consequently, the following side effects of strong exportation will be the strong pressure of local currency's appreciation to a certain percentage that is agreed and acceptable by those countries that import a lot of goods from you in order to balance the international deficit trade account.
Reversely, Country with low exportation/high importation will face the depreciation of the local currency eventually, and hopefully the depreciation can:
(a) attract more foreign investments come in to increase the job markets and stimulate economic growth (not as I know yet)., or
the unpleasant case could happen, borrowing .
(b) because you have no way to get enough dollars from exportations to pay-off the foreign debts except borrowing, borrowing, borrowing... which unfortunately is the DR's case.
In order to hold or reverse the depreciation of the Peso, there is no perfect ways to satisfy every aspect, every people, every business, or every political party, you name it. But in order to gain something in the long-run for the public and this country, you have to give up something in the short-run. It is not trade-off or exchange, it is the future benefits for all Dominicans as whole, especially in this very moment.
when all the possible alternatives have been presented and evaluate all the Pros and Cons, the decision maker needs to have a strong mind to decide "Among those options, which one is the best for the public, again for the public, not for the small interest groups." The saying sounds like not clearly enough, but there are some most directive ways to see the quick results, namely (A) externally and (B) internally.
Externally:
1. EITHER reduce the "unnecessay items" of importations to balance the international trade OR levy very high importation tax to reduce the market demand for those "unnecessary items". Unnecessary items are defined those things not have life threatening without using them, plus locally can obtain those items. For example, you can either eat domestic food products or you will pay high price to eat imported food products. Likewise, You can either drive a nice luxury car but you have to pay 3 or 4 times of the purchasing price domestically as opposed to the purchasing price in foreign countries.
2. EITHER reduce the gasoline's importation OR levy high importation tax on gasoline usage from local users. Government needs to encourage people use public transportations, yet, need to monitor or set up regulations on the fare charged of the public transportation.
3. EITHER take terms to reduce the power supply in each area with pre-scheduled, and announced time , OR set up the constraints that every house can consume. The more you consume, you will have to pay much more than the other average families.
There are many other available ways and can be utilized by the govenment. In fact, those are not perfect ways, but what are the perfect ways? Can any body tell us? I think it is hard to find out. For some people, these are not acceptable ways, because the government is intervening the life style of them.
But, the answer is EITHER you have to give up the temporary enjoyments NOW to exchange the better future living for your children/descendant and prosperity of the country OR you want your children/descendant to live in a big debt life?
Internally
1. Set up a good example (frugal, thrify on everything) from the hing post government officials, and take actions right now. (will they give up this? I don't know)
2. Heavy penalty for government employees who are violating the code of conduts. Set up one independent special unit, and this unit needs to report the results to the public on regular basis, not to any specific government unit. The member of the special unit needs to have the highest standard moral value for his/her country. They will unschedule, unannounce to investigate all government different units, and they should be entitled some certain protections from the government. If they commit any violations, they will have even heavier penalties, and everything needs to be open, transparency, not black-box system. (not easy jot, isn't it?)
3. Set up a special fund for those "best of the best" students in DR (the screening test is very very important, the criteria should be knowledge, language ability, loyalty...etc) , send them to the US or other highly developed countries to study in different fields and learning from them. Those sudents have to come back to DR after the graduation of the Ph.D degree (by signing the contract). They will contribute their knowledge to this country and work in the public assigned post regardless whoever the political party is in power. (Remember, they will be the essence of this country's future, and they deserve some certain respects)
4. Every year, government should host one big scholars meeting in different fields such as "technology, economical, medical, biotechnology, enviromental, social...etc." Invite those scholars (local or foreign) to discuss the approachable and feasible ways to improve this country, then the goverment should follow-up with time tables to accomplish those "highly valuable, constructive suggestions." (Don't think the money spending is in vain, you will get much much more in returns in the future.)
Again, internally there are so many ways could be done, the key is" do you want to make it work or not?" "Do the actions, not only saying." "Rome is not built in one day."
As a foreigner living in this country few years, I have found most of the people are very friendly, but they are also the main group have to put up with a lot of unfair things such as high inflation, high bills for the power, ...etc. You can argue this is the living style they choose because they can learn or improve themselves to a better level, but they did not it. True, But, from the government's responsibilities point of views, government can't get any excuse to ignore or neglect the facts: "HOW TO IMPROVE MY PEOPLE'S LIVING STANDARD TO A BETTER LEVEL IN THE FUTURE."
internally