As of Friday morning, the Euro was being traded at US$1.076725 in the world markets and yet the Central Bank of the Dominican Republic is maintaining exchange rates that make the Euro considerably less attractive. The Central Bank?s rate for the Euro currently stands at RD$17.41, while the US Dollar is being traded at RD$22.50. The European Union has insisted on the need for a transparent value of the European currency and yet Dominican authorities appear to have done very little to comply. In a situation of total currency transparency, European customers could be enticed to pay their Dominican suppliers in Euros. In stark contrast to current trends in the rest of the world, however, the current rates upheld by the Central Bank makes it more profitable for Dominicans to accept payments in US dollars. A transparency of the European currency would also remove pressure from the US dollar and help stabilize the rampant devaluation the peso has undergone in the last 6 months.
