Listin Diario reports that contrary to what had been expected, the net international reserves of the Central Bank fell 34.4 percent in mid February, despite the country issuing US$600 million in sovereign bonds. The sovereign bond placement specified that US$150 million would be allocated to strengthen the international reserves. The January placement of the bonds established that US$315 million of the funds generated would be used for foreign debt payment, and US$135 million to pay debt with local commercial banks. The government deposited the totality of the sovereign bond placement money in the Banreservas, the governmental commercial bank.
Economists of the CenAntillas economic think tank under the Pontificia Universidad Catolica Madre y Maestra have expressed their concern in holding the funds in the Banreservas because the government is free to spend this money at its discretion.
International reserves suffered in 2002 as the Central Bank strove to detain the run on the Dominican peso fueled by a decline in export revenues, high imports including increased cost in petrol imports, and general overspending by the Dominican government.