The president of the Association of Commercial Banks, José Manuel López Valdez, told the El Siglo newspaper that he forecasts that the present favorable macroeconomic conditions will be sustained in 2000. He forecasts that the exchange rate will maintain its present stability and interest rates will drop slightly next year. He believes that 2000 will be a good year for the economy, especially if macroeconomic and monetary equilibrium policies continue to be implemented by the monetary authorities. He says continued equilibrium in public finances and prudent monetary policies will result in a drop in inflation and stability in the exchange rate. He forecast slightly lower interest rates on deposits. He said it is not convenient that lending rates drop, because then deposits in pesos would not be competitive. He said that the unknown variable for next year that could most affect the DR is the price of fuel. In the DR, deposits can be made in US dollars or in RD pesos. López Valdez said that banks are paying 3-4% on dollar savings accounts, and 6-7% on dollar certificates of deposits, and lending dollars at 11-12%. Banks are paying up to 24% on deposits in pesos.
