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Rising dollar favors higher employment, but pushes prices

February 25, 2014 by Staff News Writer

The movement of the dollar still creates uncertainty in the productive sector. | FILE / EYLEEN VARGAS.


An increase to the value of the dollar will favor the creation of new jobs, and improves the economic situation of many companies. However, it hurts companies that import goods, which will have to increase prices in order to replenish their inventories.

Those in the tourism sector are happy to see higher dollar prices as it increases profit margins. In the construction sector, prices are normally fixed in dollars because much construction material is imported. Volatility is more of a problem because it is difficult to predict future costs.

La Nacion

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