The climate and the confidence that the Dominican Republic inspires for local investment and foreign direct investment (FDI) make up a scenario valued by major corporations.
SANTO DOMINGO.– The climate and confidence that the Dominican Republic inspires for local investment and foreign direct investment (FDI) create a scenario valued by major corporations such as Scotiabank, which is interested in strengthening and expanding its operations in the country, given a growing market that is opening new opportunities for the creation of innovative financial products.
This was expressed by Francisco A. Aristeguieta, director of Grupo Banca Internacional, and Gonzalo Gil, general manager in the Dominican Republic of Scotiabank, during a visit to the governor of the Central Bank of the Dominican Republic (BCRD), Héctor Valdez Albizu.
Scotiabank executives expressed to the governor the corporation's intention to broaden and expand its financial activities in the Dominican Republic, considering our country to be the most advantageous in the region in terms of current and future prospects, in pursuit of leadership positions through the diversity of its products in the market.
For his part, Valdez Albizu pointed out that the fundamental pillars of this confidence are based on a climate of certainty, social peace, legal security and stability of monetary policy reflected in its indicators, which was ratified by the executives, who highlighted the certainty transmitted by the BCRD as the transversal axis of the economic advances they produce in the country.
The governor explained that, despite the climate of international instability caused by the armed conflict between Russia and Ukraine, and various factors that contribute to global price increases, the Consumer Price Index (CPI) in the Dominican Republic experienced a monthly variation of 0.52% in August 2023, and that, with this result, the year-on-year inflation, measured from August 2022 to August 2023, stood at 4.27%, remaining within the target range of 4.0% ± 1.0%, which is expected to continue until the end of the year.
This behavior of inflation, along with other elements that confirm a climate of stability, has allowed the Central Bank to maintain its monetary policy interest rate (MPR) at 7.50% per year.
Valdez Albizu confirmed the favorable situation for investment in the Dominican Republic, noting that the monthly indicator of economic activity (IMAE) registered an expansion of 2.0% year-on-year in August, accumulating an average growth of 1.5% in the first eight months of 2023.
He added that “it is important to highlight the positive performance of the hotel, bar, and restaurant sector, as well as the improvement in sectors such as construction and agriculture. For the remainder of the year, greater dynamism in economic activity is expected, supported by the implementation of monetary stimulus measures, increased projected public investment, the sustained boost from tourism, and foreign direct investment, which is estimated to reach US$4 billion, similar to last year.”.
He also indicated that the stability of the Dominican peso in the foreign exchange market will continue, and that, as a result of the easing measures, greater growth in monetary aggregates is observed, expanding at rates significantly higher than that of nominal gross domestic product (GDP).
They also expressed their interest in strengthening their relationship with the Central Bank, considering this link strategic for future decision-making.
The governor was accompanied by the manager, Ervin Novas Bello, and the deputy manager of Monetary, Exchange and Financial Policies, Joel Tejeda.
