A Case Of Peso Pacification

March 2005 | Currency Forecast

After his election last May, optimism over the ascendancy of the new, reform-minded President Leonel Fernandez, together with hikes in domestic interest rates caused a rally of over 40% in the peso through to late January to the DOP27.00 - 28.00/US$ area. However, since then, the unit has consolidated at around this level as the monetary authority has striven to maintain a flexible, but stable exchange rate with a view to lowering inflation to single digits by 2006 as recommended by the

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