Ironically, just when the DR economy seems to be improve amid the IMF agreement and rising confidence, Free Zones are hurting. Not all Free Zones, obviously, but those that face fierce competition from China have the most to lose, now that the textile quota is gone.
Another thing, while the US$ has depreciated dramatically against most other world currencies, RD$ seems (as far as I know) to be the only currency that doubled its value against US$ over the past year. This, I'm afraid, might be the last nail on the coffin that forces some exporters out of business.
Asian countries are having a great time riding the export wave since many of them (China, Hong Kong...etc) have their currencies implicitly/explicitly pegged to the US$. So the weaker the US$, that better their export prospects are at the expense of other strong-currency countries.
Food for thought !
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http://elcaribe.com.do/articulo_mul...d=A651B18A5F95445689D43A5399751417&Seccion=64
Contin?an los despidos en zonas francas
Por la eliminaci?n de las cuotas al comercio mundial de textiles
Por EFE / elcaribecdn.com
Viernes 18 de febrero del 2005 actualizado a las 4:32 PM
Another thing, while the US$ has depreciated dramatically against most other world currencies, RD$ seems (as far as I know) to be the only currency that doubled its value against US$ over the past year. This, I'm afraid, might be the last nail on the coffin that forces some exporters out of business.
Asian countries are having a great time riding the export wave since many of them (China, Hong Kong...etc) have their currencies implicitly/explicitly pegged to the US$. So the weaker the US$, that better their export prospects are at the expense of other strong-currency countries.
Food for thought !
-----------------------
http://elcaribe.com.do/articulo_mul...d=A651B18A5F95445689D43A5399751417&Seccion=64
Contin?an los despidos en zonas francas
Por la eliminaci?n de las cuotas al comercio mundial de textiles
Por EFE / elcaribecdn.com
Viernes 18 de febrero del 2005 actualizado a las 4:32 PM