“Re-election benefited from measures taken by the BC” | Daily list
The measures of monetary stimulus and protection of the value of the Dominican peso taken by the Central Bank are a hidden support for the candidacy of President Abinader. This is a big difference from what the opposition can do when it seeks to overthrow a ruler from the presidential throne.
Abinader, without the BCRD interfering in politics and campaign battles, benefits greatly from the punctuality with which the institution takes measures to improve credit, protect the peso, lower interest rates and allowances through reserve requirements.
Since the beginning of 2023, Central Bank Governor Hector Valdez Albizu has scheduled meetings with representatives of the sectors most related to economic development, such as commercial banks, savings and loan associations, housing developers, industrialists and others.
In the middle of the year, the Monetary Board approved the release of resources from the mandatory reserve in the amount of 94 thousand dorado dollars. It also approved 25 billion doi, bringing the total to 119 billion doi through the rapid liquidity facility to stimulate economic activity.
Monetary policy and reserve requirement payments distributed by financial authorities have allowed the construction sector to demonstrate a recovery from the negative impact it had last year and in the early months of 2023.
It must be said that the ruler needs the country to have a strong economy, one of the best in Latin America, but the fact that polls almost generally put him far ahead of his opponent, Dr Leonel Fernandez, is encouraging for his strategists. who caress the first round of 2024.
President Abinader had a good year in all respects, especially economically, although natural disasters such as the San Cristobal explosion distracted him from his plans. Opponents do not think so and believe that the situation may change before the May elections.
Without resorting to praises of Avinader’s fate, the current ruler is benefiting, among other things, from the tourism boom. Tourism Minister David Collado and hotel and business tycoon Frank Renieri welcomed this year’s 10 millionth tourist to Punta Cana this week. This was the wish of former President Medina.
Collado has been so successful in tourism management that recent polls in several newspapers indicated that he would win the Contemporary Revolution Party (PRP) nomination for National District senator if Raful did not run. Such a proposal would appear to run counter to the aspirations of Collado’s strategists, who have their sights set on a 2028 presidential candidacy.
The very astute Abinader intends to improve the electoral formula of the capital, for which he accepted the proposal of the strategists to change the candidacy to senator from the National District, a position to which its current president, Farid Rafoul, from the dynasty of this Lebanese family, aspired.
In his place, with the approval of the President, will apparently be chosen Dr. Guillermo Moreno García, a native of Santiago and grandson of the distinguished poet Domingo Moreno Jiménez, a teacher and a man of many merits. If elected, the president of the Alianza País party will regain lost ground.
Moreno García served for just over one fiscal year in the National District (1996–1997) under the command of Dr. Fernandez. He resigned due to controversy. In the elections he will face Omar Fernandez, the son of the former ruler. With the support of President Abinader’s popularity and the absence of a failure rate, he is likely to succeed in his task.
In a hypothetical case that he lost to a young lawyer whom the public calls “Leonelito”, Moreno García would have the opportunity to be appointed Attorney General of the Republic, a position currently held by Dr. Miriam Herman, and which has long been announced as previously reported to be in In any case, he will leave this position in August 2024.
Keeps the rate at 7%
At its December 2023 meeting, the BCRD decided to maintain the Monetary Policy Rate (MPR) at 7% per annum and the Continuous Liquidity Expansion Rate (1 per day repo) at 7.50% per annum and the interest rate deposits (Overnight) continues at 5.50 annually.
This measure, as explained in the organization, takes into account the recent evolution of the international situation and the behavior of the Dominican economy, especially inflation. Year-on-year inflation was significantly reduced during the year as a result of monetary and fiscal policies implemented and easing pressure on domestic demand.
The central bank also reports that interannual inflation fell by 564 basis points from a peak of 9.64 in April 2022 to 4.0% in November 2023, forecasting it will close below the central target range of 4 in 2023. 0%.
“Similarly, core inflation, which excludes prices for the most volatile components of the basket, such as fuel and some food products, continues its downward trend, falling from 7.29% in May 2022 to 4.48 in November 2023,” the central bank says .
In another report released this week, Central Bank Governor Valdez Albizu said that through a comprehensive joint strategy with several banks, he would inject US$200 million into the market between the end of the month and the beginning of January. 2024, through its Forex e-trading platform.
Messages from the Central Bank and statements from Valdez Albizu resolved the issue of receiving fresh news in the economic sections of the media. Although the governor makes few media appearances, he does appear before the press from time to time and has published reports in several newspapers on paid platforms.
Mr. Valdez Albizu’s extensive career spanning over 25 years makes him the longest serving official as governor. His first appointment was made by former President Balaguer in 1994. He was then appointed by Dr. Fernandez, Medina and Abinader. Only one previous governor had a long career. It was Diogenes Fernandez, who lasted 13 years.