Central Bank Governor Hector Valdez Albizu has disclosed that the Dominican economy has grown by 4% during the first quarter of the year, way beyond the – 0.1% negative growth rate for the same period in 2004.
Valdez Albizu pointed out that despite the decline in borrowing from banks, private consumption is up 24.6% and net international reserves closed at US$441.1 million in March, exceeding the targets established in the letter of intent with the IMF for the entire year.
As reported in Diario Libre, Valdez Albizu recognizes that the peso is overvalued by two or three percentage points, stating that this is not due to monetary restrictions, but rather its performance on the free market. Valdez Albizu, as reported in the Listin Diario, said that the appreciation of the peso has meant savings of RD$10 billion in foreign debt payments. He said that the appreciation has also enabled the government to mitigate the increase in the price of petroleum.
Valdez Albizu also revealed that the country now has a surplus of US$348.5 million in its balance of payments.