“Measures adopted by BC benefit re-election”. daily list

The monetary stimulus adopted by the Central Bank and the measures to protect the value of the Dominican peso are implicit support for the candidacy of President Abinader. This is a vast difference from what the opposition might do if it tried to remove the ruler from the presidency.

Without involving the BCRD in the battle of politics and electoral campaign, Abinader benefits greatly from the punctuality with which the institution takes measures to improve credit, defend the peso, reduce interest rates and facilities through the legal reserve. Still working.

From the beginning of 2023, the Governor of the Central Bank, Hector Valdez Albizu, scheduled meetings with sectors related to economic development, such as commercial banks, savings and loan associations, housing developers, industrialists and others.

At mid-year, the Monetary Board approved the release of resources from the legal reserve for the amount of RD$94 thousand. It approved RD$25 billion through the Rapid Liquidity Facility, bringing the total amount to RD$119 billion, to boost economic activity.

After the negative impact presented during the last year and the first months of 2023, monetary policies and legal reserve disbursements distributed by the financial authorities have allowed the construction sector to show a rebound.

It must be said that the ruler needs a solid economy, among the best in Latin America, but the fact that surveys almost universally place him far ahead of his rival, Dr. Leonel Fernández, encourages his strategists. He’s a first-round pick in 2024.

At least in ideas, President Abinader has had a good year, especially economically, although natural disasters and accidents such as the explosion in San Cristóbal distracted him from his agenda. Opponents don’t see it that way and believe the situation could change between now and the May elections.

Without resorting to the myth about the fate of Abinander, the current ruler benefits, among many things, from the tourism boom. This week, Tourism Minister David Collado and hotel and business magnate Frank Rainieri welcomed this year’s 10 millionth tourist to Punta Cana. That was the wish of former President Medina.

Collado has been so successful in managing tourism that several recent newspaper polls showed him as the winner of the candidacy for senator of the national district for the Modern Revolutionary Party, PRM, in the event that Raful did not run. Such a suggestion would conflict with the aspirations of Colorado strategists who have their sights set on the 2028 presidential nomination.

Abinader, very astute, intends to reform the electoral formula of the capital, for which he accepted the strategists’ suggestion to replace the candidacy of the senator for the national district, which was held by the dynasty, to its current incumbent, Farid Rafful. It was a desired position. Of that Lebanese surname.

In his place, with the approval of the President, Dr. Guillermo Moreno García, born in Santiago and grandson of the prominent poet Domingo Moreno Jiménez, a teacher and a man of many qualifications, will apparently be chosen. If elected, the president of the Alianza País party will regain lost ground.

Moreno García was under the command of Dr. Fernández for only one fiscal year (1996–1997) of the National District. He resigned due to disagreement. In the elections he will have to face Omar Fernandez, son of the former ruler. Supported by President Abinander’s popularity and without the approval rate, he will likely get the job done.

In the hypothetical case that he lost to the young lawyer whom the public calls “Leonolito”, Moreno García would have the option of being nominated Attorney General of the Republic, a position now held by Dr. Miriam German, and who has for a long time It was announced earlier that she would step down from the post in August 2024 under any circumstances.

Rate remains at 7%

At its December 2023 meeting, the BCRD decided to maintain its monetary policy interest rate (MPR) at 7% per annum, and the standing liquidity extension facility rate (1 repo per day) remains at 7.50% per annum and the interest- The effective deposit rate (overnight) continues at Rs 5.50 per annum.

This measure, as explained by the entity, takes into account recent developments in the international environment and the behavior of the Dominican economy, especially inflation. The monetary and fiscal policies implemented as well as pressure from lower domestic demand have resulted in a significant decline in year-on-year inflation.

The Central Bank also reports that inter-annual inflation has declined by 564 basis points from a peak of 9.64 in April 2022 to 4.0% in November 2023, projecting it to close below the 4.0% central price target range in 2023 Will go.

“Similarly, underlying inflation which excludes prices of the most volatile components of the basket such as fuel and some food items, continues to trend downwards, declining from 7.29% in May 2022 to 4.48% in November 2023.” The Central Bank says.

In another report published this week, the Governor of the Central Bank, Mr. Valdez Albizu, explained that through a comprehensive joint strategy with several banks, he will inject US$200 million into the market between the end of the month and the beginning of January. 2024, through their platform. Electronic Forex Trading.

The Central Bank report and Valdez Albizu’s statements have resolved the issue of receiving fresh news in the economic sections of the media. Although little attention is paid to media appearances, the Governor makes occasional appearances before the press and publishes reports in paid space in several newspapers.

Mr. Valdez Albizu’s extensive career of more than 25 years makes him one of the longest serving officials in the post of Governor. His first appointment was in 1994 by former President Balaguer. Then it was done by Dr. Fernandez, Medina and Abinader. Only one previous governor had a longer career. This was Diogenes Fernandez, who lived for 13 years.