Hard currency sources offset rising oil: Central Bank

Santo Domingo.- In its latest monetary policy report, the Central Bank said the increase in oil prices is being compensated by a greater dynamism in the activities that bring hard currency, such as tourism, remittances, and exports of goods and services.

It said direct foreign investment, which contributes to the exchange rate’s relative stability bolsters the international reserves.

The information was provided after the Monetary Policy meeting in May, the Central Bank decided to keep its monetary policy interest rate at 5.25% per annum.

It affirmed that it adopted the decision based on an exhaustive analysis of the balance of risks for inflation of the main national macroeconomic indicators, the relevant international environment, market expectations and projections in the medium term.

It said inflation stood at 0.95% in the first four months and in 12 months, from April 2018 to April 2017, inflation stood at 4.05%, “in around the center of the target range of 4.0% ± 1.0% established in the Monetary Program.”

“At the same time, the trend-cycle component of the IMAE expands 6.6% in April, showing that the economy will continue to grow above its potential.”