The AIG Global Trade and Political Risk report for December is reporting that the DR “faces a shortage of foreign exchange and may soon have to impose formal exchange controls. Newspaper reports and major indicators suggest that informal controls have already been imposed and sovereign risk has risen to levels that may not be adequately appreciated.” After giving a background of the situation, the AIG report continues, “Despite the injection of IMF money, the country’s gross foreign reserves fell US$33 million from September to October, and now stands at only US$487 million, while net international reserves are only at US$112 million. This is the lowest level in two years, and means the Central Bank is working with only about two weeks of imports.” Looking at the political future, the AIG reports says that “Perhaps Mejia could take strong measures, were he to remain in office. However, presidential elections are scheduled for May 2004. Mejia would like to be a candidate in these elections, but members of his own party appear to have foreclosed that option. Consequently, his government appears to be more or less a caretaker until the next president is chosen.”