The executive vice president of CONEP pointed out that the behavior of crude oil, the dollar, interest rates, and inflation must be kept under surveillance due to potential repercussions on the Dominican economy
Santo Domingo.– César Dargam, the executive vice president of the National Council of Private Enterprise (CONEP), urged to maintain constant monitoring of international economic variables in light of the possible effects they could generate on the economy of the Dominican Republic.
Dargam pointed out that the behavior of oil prices, the dollar, interest rates, and inflation must remain under observation to determine if current external pressures persist over time and require additional measures.
“We are in constant dialogue with the authorities, monitoring the behavior of prices, the behavior of the dollar rate, the price of a barrel of oil, interest rates, and all of this is what leads to making decisions,” he stated.
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He explained that the international scenario has a direct impact on the country, especially due to its dependence on imported inputs. In that sense, he warned that every increase in the price of oil can raise the costs associated with transport, freight, and raw materials.
However, Dargam clarified that these pressures do not necessarily imply immediate price increases, so he insisted on the importance of observing the evolution of the indicators before anticipating their effects.
Likewise, he pointed out that decisions on international interest rates constitute a reference for the Dominican monetary authorities and considered that there is still room to evaluate possible adjustments as the economic landscape evolves.
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Dargam indicated that it must also be observed whether the monetary policy measures applied maintain their capacity to control inflation in the face of new international conditions.
Rate hike
It is recalled that the United States Federal Reserve (Fed) raised its benchmark interest rate by a quarter of a percentage point yesterday, placing it in a range of 3.75% to 4%, as part of its efforts to contain inflationary pressures in the U.S. economy.
The decision represents the first rate hike since July 2023 and implies a tightening of financing conditions for businesses and households. The U.S. central bank also anticipated that another increase might be necessary before the end of the year if inflation trends require it.
