The governor of the Central Bank, Hector Valdez Albizu, said that the government does not favor a devaluation of the peso until tax reforms are implemented. Several of these are still pending for approval by the Congress. The chief economic officer of the nation said that, without the tax reforms, a devaluation would have serious consequences on the standard of living of the population. He said there would be an increase in inflation, interest rates and in the price of gasoline. Hector Valdez Albizu told Hoy newspaper that the Dominican economy grew 8.2% last year and that the inflation rate was 8.3%, lower than estimated. Valdez Albizu forecast that the economy would grow six percent in 1998. The Central Bank has injected the exchange market with US$40 million in recent weeks in order to reduce upward pressures.
