Macroeconomic Forecast Dominican Republic

July 2007 | Macroeconomic Forecasts

BMI View: The Dominican peso sold off to its lowest level in almost three months in early July, closing at DOP32.85/US$ on July 6. We are slightly concerned that the currency has remained on the weak side, despite robust economic activity and buoyant levels of foreign investment, most likely as a result of high international commodity prices, particularly oil, in recent months. For now, we stand by our year-end forecast of DOP32.00/US$, although a break below DOP33.00/US$ would represent a bearish signal, in our view, which could presage further short-term weakness.

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