Economist Rolando Reyes said in an interview with Hoy newspaper that he does not
believe the IMF would resume the agreement with the DR as long as the foreign
exchange black market is thriving. In the interview published yesterday, Reyes
commented that if the market were liberalized again, the exchange rate on the
formal market would leap to RD$40 to US$1, he said. He speculated that the
government would hang on to a two-tiered exchange market until the 2004 National
Budget gets its stamp of approval. He explained that the 2004 budget is one of
the most important factors for the country to resume its agreement with the IMF.
The buying rate currently hovers at RD$39 to US$1, with transactions reportedly
being carried out in the black market for over RD$42 to US$1. The Euro buying
price is at RD$46 to EUR1, with these being sold for about RD$50 to EUR1.vention.