Finance Minister Vicente Bengoa says that the government has met the requirements of the stand by arrangement with the International Monetary Fund despite the rising price of petroleum because of the appreciation of the peso. As reported in Hoy newspaper, he said that the exchange rate has been fluctuating between RD$28-RD$29 to the US$1, or about 100% less than it was eight months ago.
“What has happened is that one has to take into consideration the level of the exchange rate, that when it appreciates it produces the same effect as if the price of petroleum had diminished. While the cost of fuel is very high, the appreciation of the peso has neutralized this rise,” he explained. He said that the government has a surplus in its finances compared to what had been estimated for the first quarter of the year. He said that the government has reduced investments as part of the requirement to reduce public spending.