Economist Rolando Reyes told Hoy newspaper yesterday that the Central Bank has
\nlost its credibility, evidenced by the last two certificate of deposit auctions
\nheld by the bank. Of the total RD$7 billion worth of certificates, the Bank was
\nonly able to place RD$2.5 billion, leading Reyes to conclude that the
\ncertificates have lost their appeal. He said that from September of last year to
\npresent, the CB has held 18 auctions. The certificates offered by the CB are
\n90-day deposits that buyers can redeem at the end of that term, plus interest
\naccrued. Reyes commented that contrary to other countries where government bonds
\noffer the lowest yields, in the DR these are now perceived to have the highest
\nrisks and thus need to offer the highest yields to attract depositors.<\/p>\n","protected":false},"excerpt":{"rendered":"
Economist Rolando Reyes told Hoy newspaper yesterday that the Central Bank has lost its credibility, evidenced by the last two certificate of deposit auctions held by the bank. Of the total RD$7 billion worth of certificates, the Bank was only able to place RD$2.5 billion, leading Reyes to conclude that the certificates have lost their … <\/p>\n