2004News

Dollar goes down, prices stay up

The RD$6 decline in the price of a dollar over the past six weeks has not been felt by consumers. This phenomenon, closely examined by many economists, means that although their currency has appreciated, consumers must still face prices that seem rise every day and whose increases are always attributed to the cost of dollars. According to Bredyg Disla from the economic section of the Listin Diario, the stronger peso has not had any noticeable effect on the price of fuels, either. A little research on the price of the United States dollar shows that between 14 June and 16 July, the average cost fell from RD$49.50 to RD$43.50, a 12.13% appreciation in the value of a peso. But nowhere can the appreciation be seen in consumer items, and in some cases, prices have continued to rise. According to the reporter the primary cause of the newfound strength in the peso is the fact that there is less Dominican currency circulating, and therefore a fall in the demand for dollars. A source told the Listin Diario reporter that some of his clients didn?t have the necessary amount of pesos to make their usual purchases of dollars.