Franco Uccelli, the research analyst who covers the Dominican Republic for Bear Stearns, believes that “the peso weakness is a reflection of the negative sentiment among individuals and local market agents about the future prospects of the debilitated economy.” He points to the fact that the higher inflows of hard currency, owing to stronger tourism, export and remittance flows that are reacting to the depreciation of the peso, the issuance of US$600 million in soverieign bonds, a US$120 million disbursement from the IMF and one for US$100 million from the IDB, should have elsewise contained further devaluation. <\/p>\n
In his report today, he also states: “We view the restoration of the IMF program and consequent multilateral disbursements as critical for the financial viability of the Dominican Republic. Uccelli says that anxiety over the restoration of the agreement has been building up, mentioning that government officials have not been able to produce consistent fiscal numbers that conclusively show the magnitude of the country’s fiscal and quasi-fiscal deficits, as well as financing schemes designed to cover these. “Against this backdrop, the IMF is reportedly producing its own fiscal estimates, a potentially slow and painstaking process,” he writes. <\/p>\n","protected":false},"excerpt":{"rendered":"
Franco Uccelli, the research analyst who covers the Dominican Republic for Bear Stearns, believes that “the peso weakness is a reflection of the negative sentiment among individuals and local market agents about the future prospects of the debilitated economy.” He points to the fact that the higher inflows of hard currency, owing to stronger tourism, … <\/p>\n