The Central Bank of the Dominican Republic announced that it will sell one hundred million dollars (US$100,000,000) on the open market this week in an effort to bring the exchange rate down from the six-month highs it has been experiencing. A reliable source told the El Caribe newspaper that between US$80 and US$100 million would be offered to the public. The funds are the result of assets that had been seized and then sold at auction by the Central Bank. The source was quick to point out that the move had been approved by the International Monetary Fund (IMF) because the offering was the result of the sale of properties and other assets and would not affect the hard currency reserves of the Central Bank itself.
What was called “unexplainable nervousness” by bank experts pushed the dollar to the RD$35 to US$1.00 level yesterday. The Central Bank move will try to get the exchange rate down to around RD$33 to US$1.00.