Commenting in the List\u00edn Diario last week, economist Andr\u00e9s Dauhajre points out that the exchange rate, after several months of stability at RD$13.85 per U.S. dollar, has increased to RD$14.30, a depreciation in the peso of 3.2%, as a result of an anticipated devaluation and electoral nervousness. With the first round over, the U.S. dollar dropped again to RD$14.05. Andr\u00e9s Dauhajre says that an analysis of the exchange market will show an independent observer that in December 1993 the rate in the free market for transfers was RD$12.79 per U.S. dollar. With an inflation rate of 14.3% in 1994 and 9.2% in 1995, both above the rates of 2.7% and 2.5% in the United States, the expert might conclude that to maintain the same level for real exchange rate, the nominal rate in the free market (for transfers) at the start of 1996 should be RD$15.16 per U.S. dollar. Compared to the maximum it reached of RD$14.30, one would conclude that the peso has appreciated in real terms in regard to the value it had in December 1993. As a consequence, the expert could be concerned over the loss of competitiveness suffered by Dominican exporters. In Andr\u00e9s Dauhajre’s opinion, if the exchange policy sought the competitiveness of the 1990-1993 years, the official exchange rate should be between RD$14.45 and RD$15.16 per dollar.<\/p>\n\n","protected":false},"excerpt":{"rendered":"
Commenting in the List\u00edn Diario last week, economist Andr\u00e9s Dauhajre points out that the exchange rate, after several months of stability at RD$13.85 per U.S. dollar, has increased to RD$14.30, a depreciation in the peso of 3.2%, as a result of an anticipated devaluation and electoral nervousness. With the first round over, the U.S. dollar … <\/p>\n