Lawmakers following former president Leonel Fernandez denounced alleged vote-buying intentions from “Danilist” congressmen to support the reelection bill. In this regard, lawmaker Juan Carlos Quiñones (“Leonelist”) said Danilist deputies would try to introduce the constitutional reform’s draft by late Wednesday, but no confirmation has come up yet. While Leonelists continue to oppose the modification of Constitution, locals continue to consider internal negotiations as likely, meaning the path could still be cleared if Medina wishes to pursue reelection. Adding further pressure to Medina’s possible candidacy, the leader of PRD and current Foreign Minister Miguel Vargas said his party would support a Constitutional reform, while he also conditioned PRD-PLD’s alliance to Medina being PLD’s candidate for 2020 elections.
- CPI in June decreased 0.18% m-o-m in June, taking YTD inflation to 1.17% and y-o-y comparison to barely 0.92% – both results far from BCRD’s 4% target.
- World Travel and Tourism Council affirms the deaths of US tourists in the DR should not affect DR’s long-term attractiveness as touristic destination.
- Yesterday started the first oil licensing round, which the government will consider a success if they award more than two of the 14 blocks being offered. Some participating companies are Repsol, Total, CNOOC, noble Energy and Exxon Mobil.
DOP quote closed yesterday at DOP/USD51.088, barely 0.12% up intraday. So far, 2019 has continued the trend of slow-but-steady depreciation of the Dominican Peso. In YTD terms, depreciation totals only 1.38%. Switching gears, and taking a look at the sovereign curve, the benchmark DOMREP’49 evidences our view regarding how US-dollar assets seem to be hitting a ceiling due to the slowdown of economic activity and political uncertainty. We stand by our expectation on the resolution of PLD’s internal struggles and recovery of economic activity (probably more evident by late 3Q19 and early 4Q19) could revive DR bonds’ attractiveness.