Economy / Dominican Republic
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Macroeconomic Forecast Dominican Republic
September 2007 | Macroeconomic ForecastsSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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BMI View: The ongoing build-up of foreign reserves, which totalled US$2.4bn in June, is a further reflection of the country's ever-improving macroeconomic fundamentals. The central bank's liquidity ratio (which measures the extent to which it can liquidate assets and cover short-term liabilities) now stands at 145%, a considerable improvement from the all-time low of 36% in 2003. Increased liquidity mitigates the economy's exposure to external volatility - a key factor behind the recent ratings upgrade implemented by Standard & Poor's. As such, foreign reserves remain on course to hit our year-end target of US$2.5bn.