The Monetary Board ruled that exchange banks must open a special account in hard currency in commercial banks to cover the hard currency demands of their clients. The accounts will primarily be used for the payment of imports and services. The resolution dated 5 March also rules that commercial banks must sell all hard currency no later than 48 hours after the purchase has been made. Remnant hard currency must be sold to the Central Bank at the official rate, which at the present time is about RD$0.50 less than what they would get from their clients. The measures seek to counter speculation. Nevertheless, economic analysts have criticized the recent measures as retrograde, similar to measures taken in years past by other governments, which have proven ineffective over time. The analysts say that political considerations are overriding sound long term economic policy. The municipal and congressional elections will be held 16 May 1998.
