Close Gallery
Hector Valdez Albizu: Bad bet by dollar changers.
Zoom Picture

Santo Domingo.- The dollar’s exchange rate, which early Wednesday headed upwards, drastically receded at the close of business on Thursday, declining more than 18 points.

Wednesday’s statements by Central banker Héctor Valdez Albizu to news source listin.com.do apparently had an impact on the currency’s decline, in addition to the  news that Dominican Republic had placed US$750 million in bonds.

International reserves

Economists consulted said the Dominican peso is expected to appreciate significantly with the bond offer while the Central Bank’s strong position on international reserve will allow the purchase of dollars at a much cheaper price.

Speaking after a meeting with bankers to discuss the entry date for a new format for checks, the official said the holders of dollars “are making a bad bet wanting to play with the exchange rate.”

Share / Recommend this article: FacebookFacebook Digg thisDigg this del.icio.usdel.icio.us TechnoratiTechnorati YahooYahoo Facebook
COMMENTS
12 comment(s)
Written by: Blutarsky This user is banned, 30 Apr 2010 8:03 AM
From: Dominican Republic, No Spin Zone
That is what they said about the guys selling short the bad mortgages that crashed the economy........" I Quote.. “are making a bad bet wanting to play with the exchange rate.”
Written by: VeronicaDR, 30 Apr 2010 9:38 AM
From: United States
I don't believe for one minute any of this. This guy even looks like the old Iraqi Information Minister.Keep stretching the rubber band and eventually it will snap and break. Fix the causes and don't artificially make people think the peso is worth more than it is in the end it will only hurt us more.
Written by: ElProfe This user is banned, 30 Apr 2010 9:49 AM
From: Dominican Republic, Jarabacoa
Veronica My Dear

You have to remember, the DR is no longer looking at exporting vegetables, they have a new cash crop called drugs and money laundering.
Written by: WalterPolo, 30 Apr 2010 11:30 AM
From: Dominican Republic, Puerto Plata
This dollar appreciation probably has a lot to do with the elections.
Don't want to be here in 2012.
Written by: ElProfe This user is banned, 30 Apr 2010 11:38 AM
From: Dominican Republic, Jarabacoa
WaterPolo

None of us will be here by the end of 2012, unless you have a real good bunker!!!!
Written by: THINK, 30 Apr 2010 4:40 PM
From: United States, SDQ -- Mia --NY

The exchange rate in DR is not balanced by the Demand and Supply of the US dollars in the Free Market.

Nevertheless, sometimes the Central Bank needs to step in to control the speculations, but in DR's case:

The Government is manipulating the exchange rate in the benefits to importers who are, I assuming, those big DR business.

For exporters, sorry, you are on your own to make a living.
Written by: THINK, 30 Apr 2010 4:48 PM
From: United States, SDQ -- Mia --NY
By the way, I am wondering this might be the internal "dirty works" for PLD candidates...

Why?

Those Candidates get the inside tips to exchange their US dollars at certain date, and let all Dominicans share the cost including PRD.......
Written by: Ricardolito, 30 Apr 2010 7:17 PM
From: Dominican Republic, vieja Santo Domingo
The official report from the IMF stated that they thought the peso was broadly at the correct level with the dollar .
Written by: juanb, 30 Apr 2010 8:15 PM
From: Dominican Republic
They are so busy promoting the fact that they placed $750,000,000 in bonds that they neglect to mention that no one wanted to buy the other $250,000,000 that they were offering.
Written by: Arturo366, 30 Apr 2010 9:02 PM
From: Dominican Republic
I can't believe they are pulling that off again. Hipolito did the same thing the year before he left...saying he would "lower the dollar". At Christmas, he forced Dominicans to sell their dollars using the militia for 30 pesos for 1. Then, as the plan worked the dollar was sold 59:1 by January.
Written by: Escott, 1 May 2010 2:01 PM
From: Dominican Republic, Cabrera and Sosua a 2 days a month for payday
BS the peso NEVER hit 59
Written by: Escott, 1 May 2010 2:02 PM
From: Dominican Republic, Cabrera and Sosua a 2 days a month for payday
Forced them to sell dollars at 30? Which planet are you from?
Post Your Comment | Not a member? Create your account | Lost your password?
Write your opinion here. Please keep your comment relevant to this article. Please note that any comments which contain offensive language or discriminatory expressions may be edited/removed.
You must log in to post a comment:
Username Password