The Central Bank of the Dominican Republic has lots of dollars. According to today’s El Caribe, the net reserves at the Central Bank have reached US$544.5 million, signifying the second highest level of currency reserves since July 2002. Just last month’s level was slightly higher, however. The lesser dollar-peso exchange rate and the stability of the economic indicators have created an auspicious scenario for the Central Bank, as it takes advantage of the situation to increase its international currency reserves, which had fallen to less than 25% of the current levels by last December 2003. The Central Bank is purchasing dollars on the exchange market. In order to do so, it emits pesos that it later recoups through the sale of CB certificates. Current estimates place the amount owed on certificates of deposit in the Central Bank at 14% of the projected GDP for the Dominican economy for 2004. In order to stifle inflation, the bank has reduced the amount of currency in circulation by 5.8% in over the past four months. The good news is that interest rates are down some 10% since six months ago, the exchange rate is down nearly 30% and the bank’s net international reserves are up.