The Monetary Board, the organization that sets monetary policy in the DR, fixed the exchange rate at RD$15.33 to the dollar for the period 3 to 13 July, 1998. This is up from the fixed rate of RD$14.02 that had been set in December 1996. Good news for tourists and exporters, the devaluation is likely to translate into better exchange rate applied to dollar-based credit card purchases. The decision reduces the spread between the price paid by street vendors, exchange houses, commercial banks and the Central Bank. The Monetary Board at the same time increased the commission on sales of dollars. For example, when banks were selling dollars at RD$15.25 with the 1.5% commission, the real price was RD$15.48. If banks sell at that same price, RD$15.25, the price to the buyer will now be RD$15.52. Exporters of goods and services are required by law to cash their dollars at the Central Bank. The difference between the RD$14.02 and the RD$15.33 was a negative to exporters, who had but to resort to different methods to get around the defacto penalty of their sales. Traditional goods exporters, exporters of minerals, international credit cards, telephone international services, maritime services, and sales of fuel to foreign transport companies are excluded from having to hand in dollars to the Central Bank. The Central Bank uses these dollars to pay for petroleum purchases, the foreign debt, the private debt guaranteed by the government, expenses of the diplomatic corps and other government purchases in foreign currency.
