Exchange market moved US$ 17,850 MM

The currency market moved last year around $17,850 million, a daily average of $70 million, taking into account the operations from Monday to Friday of each week, according to preliminary data of the Central Bank (CB).

The Dominican peso has shown a relative stability despite the vagaries of the global economy and the pressure that puts the oil bill in the current account of balance of payments. The national currency has just devalued in approximately a 2.8%, going from RD$ 37.54 to RD$ 38.59 in average

Monetary authorities claim that $70 million in net operations per day, with a high degree of openness, satisfies the demand for foreign exchange operators and helps to maintain the relative exchange rate stability. If so, data attest that stability which has shown the economy is not related to the entry of capital via funding, the annual average in recent years is u000ain a little over $800 million. Dominican gross domestic product (GDP) is of approximately US$ 53,000 million.

Statements to LISTÍN DIARIO, Héctor Valdez Albizu, Governor of the CB, noted that during the period 2007-2011 the average annual oil bill, an element which influences on the domestic market of currency and hence in the rate, is equivalent to 7.5% of GDP.

"This means that if the country mattered not oil, the current account would be virtually in balance, even with a small surplus." This deficit, both concern to employers, has been funded largely by a significant influx of capital, mainly in the form of foreign direct investment, which in 2011 will exceed $ feature 2,300 million. "This is reflection of the confidence of foreign investors in the country's macroeconomic stability," explained.

In 2010 the oil bill ended in $3,427 million, a 29.8% by u000aover the previous year when he totaled $2,405.7 million.

For this year is contemplated with the International Monetary Fund (IMF) an invoice for the purchase of fuel from $3,544 million, an increase of only 3.7%, which should be sincerado if one takes into account the prices of oil.

In recent statements to this newspaper, the Economist Henri Hebrard estimated that with the prices of crude oil, for the course have been taken, should be expected that the Bill grows in US$ 1 billion at the end of 2011, similar to last year increased.

"These oil prices would a very important gap, since it was expected that the balance of payments allowed a positive balance of US$ 300 million, which in turn would increase the level of international reserves." "I believe that this target is not achievable with these oil prices," said the expert.

For Hebrard, behavior followed by oil provided the u000aneed to renegotiate a number of targets provided for in the agreement with the IMF, it is not the same have an environment with an oil to US$ 82 a barrel with a situation in which crude oil must be purchased at more than US$ 100 and a series of food at prices very high.

Said the price of oil affected almost all numbers of the economy, so that the first impact shall be honest goals. These statements of Hebrard occurred in a context in which the Government and the Fund gave the fifth revision to the agreement

Rates
the Central Bank has been constant reference interest rate since June, in view of the behavior of the main determinants of inflation and the growth of 4.2 per cent which took the economy in the period January.

Valdez Albizu revealed that the economy would close 2011 with a growth of 4.5%, which was regarded as a behaviour very satisfactory if it u000atakes into account the environment international

According to preliminary calculations, the greater variation in the rate of change occurred in the last quarter of the year.

Moving magazine
according to data from the Central Bank, the oil bill increased $548.4 billion during the first half of 2011, 31%, to close the session at $2,318.5 million. The economy grew 4% in the period.

Between January and June 2011 the oil spot prices established peaks, reaching a peak of US$ 109.6 per barrel on average. The increase, compared to same period of last year, was US$ 27.6 per barrel, i.e. a 36.3%.

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