The Central Bank has increased interest rates of all CDs sold directly, after restating its perception that there are no monetary, fiscal or structural causes for the recent devaluation of the Dominican peso, according to Diario Libre. Monetary authorities expect to control the foreign exchange rate’s upward trend against the local currency. The Central Bank said the inflationary pressures of the last months are due to two basic reasons: the increase of oil prices on the international market and a more dynamic economy. It points out as a positive factor that the oil bill is being financed through a credit line at Banco de Reservas.
Listin Diario reports that one-year paper which was earning 16% in interest since the beginning of July will now receive 17%, whereas 18-month paper will now earn 19% compared to the previous rate of 17%. The Central Bank decided to raise the two-year paper by three points as a means of fostering longer-term deposits, and increased their rate from 18% to 21% – a 16.7% variation. The 30-day paper rate decreased from 13% to 12% whereas the 90-day and 180-day paper rates remain the same.