HIGH DEMAND FOR CENTRAL BANK CDS. Despite the interest rate dropping to 13.41%, there was much demand for the certificates auctioned on April 27, reports El Caribe (May 5, 2005). Individual investors make up 42.4% of the holders of these CDs. Commercial banks concentrate 33.1% of the Cds. Banks had RD$43.7 billion in Central Bank CDs as of April 27. This increase in commercial bank certificates coincides with the excess liquidity of banks. Loans and savings banks make up 18.6% of the CD market share, with RD$24.5 billion deposited. On April 27 the Central Bank auctioned RD$850 million in certificates, with a demand for RD$8.9 billion. The average interest rate of these was 13.41% and a maximum of 16.8% for 364-day deposits.
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