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Dominican peso devalued 12% |
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Written by Benton Pena
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Tuesday, 13 February 2007 |
 In the last two years the dollar has appreciated to the Dominican peso by about RD$4.00 which translates into a devaluation of the peso of 12%. Free trade zone (FTZs) representatives believe that the local currency is still overvalued and estimate that the devaluation should be at around 16%, which would place the exchange rate at RD$39.00, as opposed to the current rate of RD$33.55. Jose Manuel Torres, executive director of the Dominican Association of Free Trade Zones (Adozona), says that business people want macro-economic stability but feel that the exchange rate is still too high. Torres does however acknowledge the impact of increased competition from China, especially in the area of textile exports.
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