Central Bank controlled by the intervention rate of the dollar

The Governor of the Central Bank, Héctor Valdez Albizu, said last Thursday there was an oversupply of dollars, and that the foreign exchange market is therefore controlled, product of the intervention made by the monetary authorities.

Valdez Albizu said that to his surprise he received information that there was an oversupply of dollars "and that it was better that the Bank do so on a deferred basis if he was going to intervene further".

Reiterated that the decline recorded in the supply of foreign currency during the early days of this month, was due to enterprises in EPZs were closed by fiscal year-end activities, and sector tourism in the middle of expectations by the liquidation of the tour operators from abroad, which joined the rim - movements of the importers to meet their payments for imports carried out during the year. The official pointed out faced with this situation, it was logical the rate move u000aa little.

The Governor of the Central Bank said that every day the entity monitors the market and will continue to do so. However, pointed out that in a meeting last Wednesday the bankers asked monetary authorities that "they aguantaran hand" with the injection of foreign exchange.

"Because they remember that we do not sell, do, as well as the effect of lowering the rate, is the effect that we absorb weights and tumbamos demand." "Economies are dynamic, therefore the exchange rate not be can anchor because somehow it discouraged some sectors".

He explained that what is needed is to offer security and certainty that there will be no sudden movements and entrepreneurs and investors can plan with certainty their investments.

"For that matter, that the economy would continue its pace, and that is why I heard a casacambista say that the important tante is relative stability, which moves when you move, and lower, but" u000a"that is without sudden changes," he said. Valdez Albizu said no believes that someone is trying to intervene in the Forex market because that is very expensive, but it was a normal behavior of the market

Monetary authorities intervened the parallel Forex market due to an unusual rise in the rate of change that placed the American currency in almost RD$ 40 to the dollar. Last Thursday, the rate of the dollar closed at RD$ 38.93 for sale in banks and RD$ 38.95 in the agents

Outlook
the Governor of the Central Bank said that he believes you are at the brink of a recession in the global economy, but that in Dominican Republic, if you act with moderation and caution, they may circumvent this crisis so that the effect is less harmful to the nation as well as international agencies such as the International Monetary Fund, World Bank and other investment banks,, as occurred in 2008-2009, catalogued period u000aas the largest imporcia turbulen the last 80 years and that the country could circumvent.

He recalled that no one expected that the country potentially global crisis as it did, which is something that has been recognized by the IMF, the Economic Commission for Latin America and the Caribbean (ECLAC), and other multilateral funding.

Restraint
"I think that if we act with caution, restraint, rationality can also overcome, if some crisis as they are prophesy, what we have to do is to strengthen our productive capacity and above all understand that we must act with utmost restraint," asserted.

Also the Governor of the Central Bank reiterated that as said President Leonel Fernandez, the country won't be comprehensive nor fiscal reform during his Government and that, as it has been said on other occasions, Dominican Republic has not exhausted its capacity of borrowing, after explaining that to a country u000adebt will not pay or buy bonds "as we have placed on the market".

Valdez Albizu was interviewed after receiving an award in the Awards Pro-juventud, at the National Theatre, dedicated to various personalities for his integrity and personal growth.

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