Economy / Dominican Republic
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Macroeconomic Forecast Dominican Republic
March 2006 | Macroeconomic ForecastsSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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The peso has looked weak over the past three months due to central bank dollar purchases, but has staged a revival in March. After hitting a 17-month low of DOP/US$34.9 in early February, it has since recovered to DOP/US$32.8 (March 10). The government's commitment to a rigorous IMF programme, and progress on key macroeconomic targets is extremely encouraging and in light of the recent budget approval, and improving macroeconomic fundamentals, we see scope for the peso to strengthen medium term. Our target is DOP/US$28.0, which would represent a 15% appreciation from current levels. In the meantime, the central bank's dollar purchases present the most significant downside risk to the outlook