Economist Arturo Martinez Moya proposed that any government revenue surplus be funneled to the Central Bank in order to reduce the quasi fiscal deficit caused by the certificates of deposit issued by that institution. Martinez Moya said that the Central Bank has issued RD$23 billion in certificates since the start of the Fernandez government on 16 August to date. He says this is illegal because the Central Bank is then financing its own deficit.
He commented that the PLD government in the past was known to play down the collections it will receive, and then use a free hand spending them on unspecified investments. He said there is a 1.3% of GDP underestimation of revenues in the budget presented by the government. Martinez Moya said that the legislators should include a provision that would make obligatory for the government to use budget surpluses to reduce the quasi-fiscal deficit in the 2005 budget law at present under study in Congress.
As reported in Hoy newspaper, Martinez Moya forecast that it is likely the appreciation of the peso will not be maintained. He estimated that the Dominican peso is overvalued in 35%. He said the rate should fluctuate between RD$35-RD$40 to US$1.