Hoy newspaper?s economic section says that the recent run on the peso is the result of the government cashing back certificates of deposit at the Central Bank. The newspaper says that extra-official sources indicate the government has returned RD$3 billion and that is what has stimulated the depreciation. The dollar was being sold for upwards of US$50 yesterday, as reported in Hoy. In March, money in circulation stood at RD$64.8 billion, and increased to RD$66.5 billion in April, according to Central Bank statistics. The newspaper says there are no figures yet on money in circulation in May, but that it could have increased significantly as a result the certificates of deposit being cashed in. The reason more money in circulation causes the depreciation of the peso is that the money is in great part used to purchase dollars, reflecting the lack of confidence in the management of the present economic authorities. For updates on the exchange market, see
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