Economist Rolando Reyes told Hoy newspaper yesterday that the Central Bank has
lost its credibility, evidenced by the last two certificate of deposit auctions
held by the bank. Of the total RD$7 billion worth of certificates, the Bank was
only able to place RD$2.5 billion, leading Reyes to conclude that the
certificates have lost their appeal. He said that from September of last year to
present, the CB has held 18 auctions. The certificates offered by the CB are
90-day deposits that buyers can redeem at the end of that term, plus interest
accrued. Reyes commented that contrary to other countries where government bonds
offer the lowest yields, in the DR these are now perceived to have the highest
risks and thus need to offer the highest yields to attract depositors.