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Caribbean & Central America - March 2011 (ISSN 1741-4458)

ECONOMIC OVERVIEW: DOMINICAN REPUBLIC

President Fernández also dismissed his finance minister Vicente Bengoa in his mini cabinet reshuffle, bringing in economist Daniel Toribio in his place. Bengoa replaces Toribio as head of the state-owned Banco de Reservas. Toribio will preside over more belt-tightening. Fernández claimed during his state-of-the-nation address that the government reduced public spending by RD$40bn (just over US$1bn) in the second half of 2010 in order to maintain economic stability.
    Toribio will also lead efforts to recruit foreign governments to a “great global crusade" to confront financial speculation over oil and food. Fernández blamed international speculators and the futures contracts for the rising costs on international markets. “That is the great shame of our times. It is an immoral and unacceptable act," he said. In his Independence Day speech, President Fernández insisted that the country remained on an even keel despite public sector foreign debt creeping up to 36% of GDP, or some US$18.2bn. “At present, the Dominican Republic is not facing a devaluation or a loss of confidence in its currency," he said. “In fact, in 2010 bonds were placed on the international market at the lowest interest rate," he said. Fernández added that the country had attracted capital investment of US$2.9bn last year, and that tourism had generated foreign exchange of US$4.2bn, up US$160m on 2009.

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