Economist Rolando Reyes forecast that the peso will continue to depreciate in
\n2004, despite the increases in remittances, tourism receipts and Dominican
\nexports. Reyes based his prediction on the present excess in money supply. He
\nsaid in an interview with Hoy newspaper yesterday that it is urgent the
\ngovernment remove RD$10 billion to RD$15 billion from circulation as soon as
\npossible. ?If a strong tourniquet is not in place to control the monetary
\nhemorrhage, it will be beyond control in 2004,? he said. He pointed out that
\nfrom October to November alone, monetary emissions went from RD$64.4 billion to
\nRD$70.5 billion, and by mid-December had climbed to RD$76.2 billion. He also
\nmentioned that internal financing of the Central Bank stood at RD$91.6 billion
\nin October and had climbed to RD$98.5 billion by November. He said the domestic
\nfinancing was propelled by the continued assistance to troubled banks, but felt
\nthey could increase even more if depositors begin to cancel their certificates
\nof deposit with the Central Bank. Reyes said that the export sector has come out
\na winner in this situation, but that local manufacturers also stand to gain as
\nimports become too expensive for local consumers. ?What we are going to have in
\n2004 is an intense restructuring,? he said, as he affirmed his belief that while
\nthe economic crisis has hit rock-bottom, the country would still need another
\nthree or four years to recover fully. He forecast that 2004 will be a year
\nmarked with uncertainties, risks and volatility, both economically as
\npolitically speaking.<\/p>\n","protected":false},"excerpt":{"rendered":"
Economist Rolando Reyes forecast that the peso will continue to depreciate in 2004, despite the increases in remittances, tourism receipts and Dominican exports. Reyes based his prediction on the present excess in money supply. He said in an interview with Hoy newspaper yesterday that it is urgent the government remove RD$10 billion to RD$15 billion … <\/p>\n