Celso Marranzini, the president of the National Council of Businesses (CONEP), and an advocate of an increase in the price of petroleum, complained that the government only put the burden for paying for fuel on the private sector and did not announce a reduction in government expenditures. Celso Marranzini also said the business community was surprised by the increase of the exchange rate commission from 1.75% to 5%. He said the President should have internalized his own words of the need to go under an umbrella to weather the rain storm and order a 1 to 2% reduction in public expenditures. He said the announced measures will result in an inflation of 10-12% this year, up from 7%. Former Central Bank governor Hugo Guilliani Cury said that the measures were taken with a tax-collecting mind set. He said the government knew the reduction in the price of petroleum was forthcoming, which would have made the increase in fuel prices unnecessary. Nevertheless, he said the increase in the exchange rate commission will bring relief to the balance of payments as it discourages imports, that had been growing at a fast pace. The government also guarantees macroeconomic stability. Ignacio Méndez, president of the Association of Industries of Herrera feels that the US$-RD$ relationship will soon stabilize, as remittances peak at Christmas time, and millions are expected as a result of the privatization of state entities. The dollar is temporarily reaping more pesos on the street (vendors were offering RD$16 in Boca Chica to the dollar) where the transactions are exempt from the 5% exchange rate commission, but banks continue to pay about RD$15.63 to the dollar.
