Speculators upset exchange market

The governor of the Central Bank, Hector Valdez Albizu told media reporters that speculators have created a sort of bubble in the exchange market due in part to the volatility of the international markets following the British Brexit vote. He said the local exchange market has been affected by multinational companies who usually purchase hard currency to repatriate dividends in a gradual manner having done so in a more accelerated manner than usual.

Valdez Albizu explained that the closing of the US banks for the US Independence holiday that occurred earlier this week compounded the problem when the shut down limited the capacity of local currency exchange businesses to access assets, thus adding to the unsettled state of the exchange market.

When reporters asked Valdez Albizu how the Central Bank of the Dominican Republic was addressing the issue, he assured reporters that the Central Bank is on top of the situation and has placed about US $100 million in the market to normalize the flow of hard currency. He said that today, 7 July 2016, the country would be receiving some US$500 million in hard currency as the result of the Dominican Republic international bond placement on 29 June and that should also contribute to normalize exchange market activities.