Construction sector on the brink with rising material costs; housing prices could increase; President Abinader announced ten measures; expert predicts inflation will reach 13%; Banco BHD León will consider dropping the León surname from its name at its assembly; the Discovery gang impersonated US federal officials; liquidity contraction and exchange rate appreciation; the Russian-Ukrainian conflict raises oil prices and sends stock markets plummeting; 46 flights from Russia canceled in seven days; the conflict between Russia and Ukraine could cause millions in losses for the Dominican Republic; Ukraine and Russia conclude a new round of talks with "small advances"; Ukrainians stranded in the country were transferred to Puerto Plata
Construction sector on the brink with rising material costs; housing prices could rise
The increase in steel prices last week is a cause for concern in the Dominican construction sector, whose representatives say that this expense can represent up to 15% of a housing construction project. Guido Rosario, CEO of Constructora Rodos, described the increase in the price of a bundle of steel as serious on Monday, noting that it jumped by three thousand pesos in a single surge as a consequence of market pressures generated by the war in Ukraine; and there are fears that further increases may be on the way.
The ten measures announced by President Abinader
Expert predicts inflation will reach 13%
In 2021, the Consumer Price Index (CPI) in the Dominican Republic reached its highest level since 2008, at 8.50%, and all indications are that it will surpass double digits this year. According to estimates by economist Antonio Ciriaco Cruz, director of the School of Economics at the Autonomous University of Santo Domingo (UASD), inflation could reach between 12% and 13% by the end of 2022.
Banco BHD León will discuss at its assembly whether to remove the surname León from its name
Banco BHD León plans to soon remove the surname León from its name and become simply Banco BHD, once it is approved by the shareholders' meeting, reported Luis Molina Achécar, president of the BHD León Financial Center and of the Board of Directors of the financial entity, yesterday.
The Discovery Gang impersonated U.S. federal officials
The recent Operation Discovery, dismantled by the Public Ministry authorities, revealed that the criminal organization operated through call centers staffed by various individuals fluent in English and technologically adept, who acted as agents contacting victims, defrauding and extorting them according to a script previously established by the owner or administrator.
Liquidity contraction and exchange rate appreciation
All central banks worldwide know that banks act rationally and exercise extreme caution during crises, resulting in a credit crunch (financial institutions reduce their lending capacity). The key lesson learned from the 2008 crisis is that remedying this problem requires decisive and substantial action from the central bank. The rational approach for a central bank is to protect itself and err on the side of caution rather than deficiency. This is what the vast majority of central banks have done, having learned that one must be prepared to fight ants with bazookas. The Central Bank of the Dominican Republic (BCRD) anticipated the behavior of economic agents with a large liquidity and credit program in pesos and dollars (providing facilities exceeding RD$215 billion and US$622 million, respectively). In practice, the behavior of economic agents was as expected. The financial sector in the Dominican Republic significantly altered its dollar asset position and credit expansion.
oil prices and sends stock markets plummeting
The price of West Texas Intermediate (WTI) crude oil, the benchmark for the Dominican Republic, closed 3.2% higher at $119.40 a barrel after a volatile session marked by the Russian-Ukrainian conflict. According to data at the close of trading on the New York Mercantile Exchange (Nymex), WTI futures contracts for April delivery rose $3.72 compared to the previous close.
In seven days, 46 flight operations from Russia have been cancelled
Approximately 46 flight operations from Russia to the Dominican Republic have been cancelled by Punta Cana International Airport in La Altagracia province this March following Russia's violent invasion of Ukraine .
Conflict between Russia and Ukraine would cause millions in losses to the Dominican Republic
According to an analysis by the Dominican Republic's Export and Investment Center (ProDominicana), shared at the request of Diario Libre, the country would stop receiving US$33.7 million per month from tourism from those countries and, if the conflict extends for six months, it would be US$202.2 million.
Ukraine and Russia conclude a new round of talks with "small advances"
The Ukrainian and Russian delegations concluded yesterday, Monday, what is now the third round of talks to try to reach an agreement to reduce the conflict, and in which "small logistical advances" have been achieved regarding humanitarian corridors.
Ukrainians stranded in the country were transferred to Puerto Plata
A total of 184 people (149 adults, 31 children and 4 infants) have been transferred to Puerto Plata from Punta Cana, and are located in 80 rooms at the Casa Marina Beach & Reef Hotel, one of the hotels that offered a special rate as part of the solidarity support being provided to Ukrainian residents.
Sources : Diario Libre, Hoy, Listín Diario, El Día
