Hoy leads with the news that Central Bank governor Jos? Lois Malkum announced yesterday that he will do all that is necessary to control the soaring exchange rate. Yesterday the peso stood at a new record low, valued at RD$27.85 to the US dollar.
The recent measures aimed at curbing this that include removing RD$10 billion from circulation and imposing new controls on exchange houses, should yield some results, but these would not be evident in the short-term, according to Malkum. The Central Bank governor admitted that the measures would also lead to an increase in interest rates, already amongst the highest in the region.
In recognition of the severity of the economic situation, the Monetary Board is in permanent session. Finance Minister Rafael Calderon predicted that the peso should return to RD$21 to the US dollar in three weeks time once the measures take effect.
Central Bank governor Jos? Lois Malkum will be traveling to the United States next week for meeting at the International Monetary Fund, the Inter American Development Bank and the World Bank to discuss financial aid for the Dominican Republic in the aftermath of the Baninter collapse.