The dominican peso showed a appreciation of 6.4% at the end of August of this year, which places it as the currency that has increased its value the most compared to those of other countries that make up the CARD region (Central America and the Dominican Republic).
The data is provided byExecutive Secretariat of the Central American Monetary Council (SECMCA), body that makes a monthly report shows the movements of the Real Exchange Rate (ITCER) of each of the CARD member countries.
In the report, the SECMCA specifies that Costa Rica was the country in the region that registered the highest depreciation with 2.5%while the depreciation in El Salvador was 0.6%, in Guatemala -0.7%, in Honduras 0.9%, in Nicaragua -1.5% and in Panama 6.1%.
Dominican economists recently expressed that This appreciation that the Dominican peso has experienced benefits the importing sectors and the Government because they have to look for fewer pesos to buy and sustain public finances and it harms the sectors linked to or dependent on the dollar.
They also point out thatthis increase in the value of the Dominican pesogenerates a loss of competitiveness for the export sectorsince their costs are in pesos and these have increased with inflation. They also pointed out the negative impact that this economic phenomenon can have on the incentive toforeign direct investment, tourism, free zones and remittances.
