Exchange rate - what is going on?
http://www.bancentral.gov.do/tasas_cambio/TAC4009_BC_2007.pdf
Todays' rate by Banco Central is 31.94 (exchnage houses, banks, usually quote 50 points below) ... the rate has been continually declining (Peso appreciating) since reaching its height on Juanuary 9 (34.27), declining dayly by 10 points. The Peso is appreciating also against Euro.
Search in DR1 exchange rate's forum revealed that the rate was about 32 at the same time last year (April 2006), down from 34-something in February 2006.
Even though Euro appreciated against Dollar in recent month a lot, I don't think Euro is the leading currency in determining Peso's exchange rate to Dollar (ties with US are more important, and I do not think DR uses curency basket for its exchange rates).
I have done press research recently and I cannot seem to find any articles dealing with Dollar exchange rate.
I would have understand that the Peso was appreciating up to Semana Santa (Holy week) because of influx of tourists (the highest season of the year January-March) and lots of currency brought in to DR, thus appreciating tendencies for Peso. But it does not make any sence now.
Is somebody trying to keep dollar artificially low and push it even lower?
I'd like some discussion on what may be going on and how low will it go?
What are your thoughts?
http://www.bancentral.gov.do/tasas_cambio/TAC4009_BC_2007.pdf
Todays' rate by Banco Central is 31.94 (exchnage houses, banks, usually quote 50 points below) ... the rate has been continually declining (Peso appreciating) since reaching its height on Juanuary 9 (34.27), declining dayly by 10 points. The Peso is appreciating also against Euro.
Search in DR1 exchange rate's forum revealed that the rate was about 32 at the same time last year (April 2006), down from 34-something in February 2006.
Even though Euro appreciated against Dollar in recent month a lot, I don't think Euro is the leading currency in determining Peso's exchange rate to Dollar (ties with US are more important, and I do not think DR uses curency basket for its exchange rates).
I have done press research recently and I cannot seem to find any articles dealing with Dollar exchange rate.
I would have understand that the Peso was appreciating up to Semana Santa (Holy week) because of influx of tourists (the highest season of the year January-March) and lots of currency brought in to DR, thus appreciating tendencies for Peso. But it does not make any sence now.
Is somebody trying to keep dollar artificially low and push it even lower?
I'd like some discussion on what may be going on and how low will it go?
What are your thoughts?