Frederic Emam Zade explains in Hoy newspaper today that the Central Bank errs when it does not include the number of dollars currently in circulation in the Dominican Republic in its statements. “In dollarized countries like the Dominican Republic, money in circulation is not only the pesos in circulation, plus pesos deposited in banks, but also the dollars in circulation, plus dollars in deposits,” he said.
The economist expressed that the amount of money the Central Bank calculates should be the quantity of pesos and dollars in circulation in cash and the quantity of pesos and dollars in the local banks and foreign bank accounts of residents of the Dominican Republic used to write checks locally. He said that currently the Central Bank only considers pesos in circulation, but if they took the dollars that circulate in the DR into account also, then money in circulation would double or triple the amounts used by the Central Bank.