According to Central Bank Governor Jos? Lois Malkum, the Dominican peso should currently be at a level of RD$23-RD$24 to one US dollar, and said there are no economic reasons to explain the current rate of RD$28 to US$1. ?While in the first quarter of 2002 there was a US$90-million deficit, for the same period in 2003, there has been a surplus of US$300 million in the hard currency revenues.?
Malkum admitted that recent measures taken had stagnated the growth of the economy and increased interest rates. But, he said, what is most important is to maintain the stability of the economy, ?and then we can become concerned about growth,? according to a report in the List?n Diario.
Malkum feels the restrictive measures will need to be in place for three months.
The peso closed on Saturday at RD$28 to US$1 and interest rates currently hover at around 40%.