The governor of the Central Bank said that the macroeconomic stability of the nation, which has been maintained for four years, will continue, regardless of the increase in petrol prices on world markets. He announced that the Central Bank, as it has done in the past to maintain the stability, will implement a series of measures to restrain monetary liquidity. He announced that he would meet next week with the Association of Commercial Banks to announce the issuing of a RD$1,000 million CD, Certificados de Tesoreria (REPOS). This would bring this kind of CDs to RD$2,000 million. The Central Bank says that in the present circumstances there are no monetary nor financial reasons that should exert real pressures on internal prices and the exchange rate. He said Bank records show that the monetary base dropped 5% during the first five months of the year, and money supply dropped 15%. In annual terms, the monetary base has grown barely 6% and money in circulation only 8%, which is considered moderate when taking into consideration that the GDP grew 11.5% during the first trimester of the year. Accumulated inflation through May was 0.45%, and on an annual base this is 5.6%. He said that the Central Bank is up to date with its payments on the public foreign debt. He did announce the Central Bank is studying a series of measures that would preserve the macroeconomic stability and avoid pressures that the increasing cost of petroleum may bring.
