2004News

Dollar jumps higher

The US dollar jumped RD$4 to RD$5 on the exchange markets over the past weekend. During Friday, Saturday, and Monday activity, dollars were being bought by the various exchange banks at prices of around RD$28.50. On Tuesday, the dollar jumped to as much as RD$34 per dollar. Even the Central Bank website showed a big move as the dollar went from RD$28.77 to RD$29.87 overnight. According to Hoy, the main cause of the new rise in the cost of the US currency is the fact that the Dominican Refinery has entered the marketplace in search of dollars to meet its oil payments. Hoy also says that many analysts feel the situation is circumstantial and that stability will return. One of the major concerns for local analysts is the fact that over the past four months prices of consumer items have not been able to keep pace with the dropping cost of dollars. While some items have fallen in price, others have not, and while there are many reasons for not being able to keep up with the fall in dollar costs, the analysts are worried that the sellers might cancel plans to reduce prices in the face of a fluctuating market.