Hoy newspaper reports that while the US dollar was being sold for between RD$40 and RD$40.25 yesterday – a record low for the peso – there was little movement on the exchange market due to limited demand and a shortage of dollars. Commercial banks kept the rate just below the RD$40 mark, but exchange houses set their rates at the new record level. The peso had rallied briefly when it appeared that the International Monetary Fund (IMF) would step in to bail out the ailing economy. Since the agreement came to a standstill over one month ago, however, it has been in steady decline. Business leaders have called on the government to take urgent steps to tackle this phenomenon. “The Dominican economy has not yet adjusted to an exchange rate of RD$35, so it is of extreme concern that it should reach RD$40,” said Rafael Alvarez Crespo of the Haina industrialists’ association. He expressed hope that this would be a temporary state of affairs. Horacio Alvarez, executive director of exporters association ADOEXPO, said that the exchange rate crisis was creating a climate of uncertainty that threatened investment confidence. The export sector needs to pull together to face the crisis, but the government also has to play its part, according to the ADOEXPO director. He added that the soaring exchange rate is making it impossible for many companies to survive: they have tried to cut their costs while prices have gone up disproportionately. The euro is being traded at between RD$40 to RD$44, report the papers.