Press Release: IMF Welcomes Recent Monetary Policy Action in the Dominican Republic

January 21, 2004

Marcelo Figuerola, the IMF Mission Chief for the Dominican Republic, made today the following statement:

"The Central Bank has embarked on a strengthening of monetary control to increase demand for peso-denominated assets and reduce the inflation rate significantly in 2004. Auctions of Central Bank certificates are helping reverse the significant expansion of the monetary base experienced in recent months. In addition, the Central Bank has, this week, raised its policy interest rates to make them generally positive in real terms, and we welcome this action which will be further supportive of the authorities' inflation-control efforts.

"Recent monetary policy actions need to be seen in the broader context of the authorities' efforts to stabilize the economy and restore sustained growth. Thus, the authorities are making significant progress in implementing measures in other policy areas aimed at early conclusion of the first review of the country's Stand-By Arrangement with the Fund."


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