"The Central Bank of the Dominican Republic remains prepared to implement measures to prevent excessive exchange rate volatility that could jeopardize the inflation target and macroeconomic stability.".
SANTO DOMINGO. - The governor of the Central Bank of the Dominican Republic (BCRD), Héctor Valdez Albizu, highlighted yesterday, Wednesday, the strength of the Dominican financial system, its current attractiveness to foreign direct investment (FDI), the stability provided by macroeconomic policy, and the climate of peace and legal security that exists in our country.
The executive shared his views during a meeting with members of the board of directors of the National Council of Private Enterprise (CONEP), headed by its president, Celso J. Marranzini Esteva, to whom he conveyed a message of reassurance regarding the tariff uncertainty in international markets, highlighting the resilience and macroeconomic fundamentals of the Dominican Republic.
Likewise, Valdez Albizu indicated that “the active interest rate of multiple banks was reduced from 16.09% in November 2024 to 14.46% in April 2025, while, for the productive sectors, the interest rate decreased from 14.51% to 13.42% in the same period, which shows more favorable conditions for private investment.”.
Similarly, he specified that "the passive interest rate of multiple banks decreased from 10.21% in November to 8.72% in April 2025, reflecting lower financing costs for the financial system.".
At the same time, the governor highlighted that “the reductions in interest rates were influenced by the measures adopted by the Monetary Board and the Central Bank, which facilitated approximately RD$200 billion since October 2024 through redemptions of Central Bank bills and notes at maturity, as well as through RD$35.355 billion in releases of legal reserve requirements for construction (interim) and the acquisition of low-cost housing up to RD$15 million, as well as for micro, small, and medium-sized enterprises (MSMEs). Of this legal reserve requirement facility, RD$14.9 billion has been disbursed, benefiting 2,635 borrowers.”.
The governor also highlighted that, in an environment of uncertainty within the production sector, “the Dominican Republic is a very attractive destination at a time when phenomena such as “nearshoring” are occurring, in search of advantageous locations for the installation of multinational companies from Asian countries such as China, India or Malaysia, among others, which have seen in our country an ideal destination to invest in free zones.”.
Regarding the outlook of greater international uncertainty, Valdez Albizu stated that "expectations have increased for both price increases and a sharp slowdown in economic activity in the United States, which could have repercussions for lower growth in the global economy.".
He also stated that “the Central Bank of the Dominican Republic (BCRD) remains prepared to implement measures to prevent excessive exchange rate volatility that could jeopardize the inflation target and macroeconomic stability. In this regard, the institution has high levels of international reserves, which reached US$14.751 billion at the end of March, equivalent to 11.7% of the gross domestic product (GDP) and more than five months of imports, exceeding the thresholds recommended by the International Monetary Fund (IMF).”.
Regarding the recent macroprudential measures approved by the Monetary Board (JM), the governor explained that "the set of measures aims to contribute to the prudential and equity strengthening of financial and exchange intermediaries, in a complex global environment with high external uncertainty, and considering the increase in private credit in foreign currency to debtors who do not generate foreign exchange.".
Valdez Albizu added that “in summary, the measures enable access to foreign currency financing for foreign exchange generators, while for non-generators, their access to foreign currency credit will be up to 25% of the foreign currency liabilities of multiple banks, and they must demonstrate sufficient income and guarantees for the repayment of the obligations contracted.”.
In that regard, the governor reminded them that “the Monetary Board approved the implementation by financial intermediation entities of the fair value (Mark to Market) in the presentation of their financial statements, effective from January 1, 2026, reflecting the regulatory adaptation process carried out by the Monetary and Financial Administration, in accordance with International Financial Reporting Standards and the recommendations of the IMF.”.
For his part, Celso Marranzini thanked the governor for the guidance provided in the report, admitting that "we knew that difficult times might come, but the visit to the Central Bank of the Dominican Republic always gives us the confidence we desire.".
The members of CONEP expressed their support for maintaining ongoing dialogue with the monetary authority, in order to uphold the spirit of cooperation and take the necessary measures in light of the uncertainty in the global economy.
In his conclusions, Valdez Albizu indicated that by 2025, FDI is projected to exceed US$4.7 billion, comfortably covering the estimated current account deficit of the balance of payments.
Marranzini was accompanied by the executive vice president of CONEP, César Dargam Espaillat; and the treasurer, Christopher Paniagua; in addition to a large delegation made up of directors representing productive sectors of the country.
Accompanying the governor were the vice-governor, Clarissa de la Rocha de Torres; the manager, Ervin Novas Bello; the deputy manager of Monetary, Exchange and Financial Policies, Joel Tejeda Comprés; the economic advisor to the Governor, Julio Andújar Scheker; the deputy manager of National Accounts and Economic Statistics, Ramón González Hernandez; the deputy manager of Regulation and Financial Stability, Máximo Rodríguez and the International deputy manager, Brenda Villanueva, along with a distinguished group of directors of the BCRD.
