According to Hoy newspaper, the US dollar is nowhere to be found. Although the exchange houses are buying the US currency at RD$34.80, or thereabouts, the sale of dollars is practically is at a virtual standstill. Rumors cited by Mario Mendez, the economic editor of Hoy, say that the burgeoning black market for dollars does have a considerable supply, at a going rate of RD$41.50 to US$1. According to the Mendez article, many people serving as intermediaries for dollar purchases do not even show up at the exchange houses, since this would require them to identify themselves to the authorities. Since last week’s meeting of bankers, remittance companies and exchange bankers, there has been a persistent buzz concerning the flourishing black market for dollars. The illegitimate situation is worrisome, according to Mendez, because this is the time of the year where a very large influx of dollars is usually felt in the market. Reporters from Hoy were unable to locate any dollars for sale.
Economist Bernardo Vega explains in a newspaper column in El Caribe today that the government wants the dollar to be at RD$35-US$1 because that was the rate it used to calculate the fiscal deficit. Any increase in depreciation, increases the fiscal deficit used for IMF negotiations.