In a meeting with leading bankers and businesspeople, Central Bank Governor Jos? Lois Malkum declared that the latest rise in the dollar/peso rate is, in his opinion, unjustified. “There are no real monetary reasons, these swings are caused by psychological factors and misinformation amongst agents”. On Monday the peso was valued at RD$26.50 against the dollar, a record low. Representatives of Banks and Exchange Houses at yesterday’s meeting assured that there was no shortage of dollars. Yesterday’s rate stood at RD$25.20 against the US dollar.
Malkum listed positive economic indicators such as the rise in GDP and growth in key economic sectors like Free Trade Zones and tourism, and expressed confidence that gasoline prices would continue to fall in the near future. He accepted that recent price rises were legitimate cause for concern, but promised that the government was looking into new measures aimed at reducing this trend. He also mentioned that electricity charges for the commercial and industrial sector would shortly be reduced by 12%, in an attempt to lower production costs. All these factors combined, according to the Central Bank Governor, would be reflected in the economy and price levels.