Economist Eduardo Tejera viewed the increase in the exchange commission from 4.75% to 10% as a desperate act of the government and the Central Bank. He said the measure violates the Monetary Law that calls for a gradual reduction of the exchange rate and that yesterday’s announcement signifies that the private sector alone will pay the price for domestic fiscal deficits. “The government is not sacrificing anything, it is not trying to lower its payroll or its spending. This is a negative solution for the production sector and yet another blow to the competitiveness plan of the country,” said Tejera, who forecast increased inflation and a soaring cost of living.
The exchange commission measure also met with opposition from the president of the Dominican Federation of Merchants (FDC), Ivan Garcia; the president of the National Council of Business (CONEP), Elena Viyella de Paliza; agriculture spokesman Osmar Benitez; the president of the National Association of Young Entrepreneurs (ANJE), Marisol Vicens and others. Vicens said it is a matter of great concern that the exchange rate commission that was instated by the Monetary Board 12 years ago as a temporary measure should now be increased. She said that the situation calls for a complete fiscal reform, not by applying patches.