SANTO DOMINGO.- The governor of the Central Bank of the Dominican Republic (BCRD), Héctor Valdez Albizu, held a meeting yesterday, Tuesday the 12th, with presidents of various banking entities in the country to analyze the prospects of the Dominican economy in the face of the current global uncertainty due to the armed conflict in the Middle East.
The executive stated that “the conflict in the Middle East finds the Dominican Republic in a process of economic recovery, with year-on-year growth of 5.1% in March and 4.1% accumulated during the first quarter of 2026. Likewise, the dynamism of foreign exchange generating activities stands out, which have contributed to the relative stability of the exchange rate, with an accumulated appreciation of the peso of 6.1% as of May 8.”.
He explained that the active interest rate of multiple banks has remained stable over the first four months of the year, hovering around 13%. Specifically, at the end of April 2026, interest rates for loans to the construction sector were 12.2%, to commerce 12.4%, and to manufacturing 10.9%.
In that regard, Valdez Albizu indicated that loans to the private sector in local currency have been gaining momentum, with a year-on-year expansion of 9.4% at the end of April. He noted that the sectors receiving the largest flows of financing in local currency are: construction (year-on-year growth of 23.0%), commerce (18.9% year-on-year), and manufacturing (18.7% year-on-year). Furthermore, monetary aggregates are registering growth rates consistent with the pace of expansion of nominal gross domestic product.
Furthermore, the Central Bank stated that, given the turbulent international landscape and more restrictive financial conditions in global markets, it will ensure that financial intermediaries maintain adequate levels of liquidity to help mitigate the high level of uncertainty. In this regard, the Central Bank decided to postpone until January 2027 the repayment of approximately RD$46 billion in liquidity facilities, which were scheduled to be repaid starting in June 2026. This measure neutralizes the impact that these repayments would have had on bank liquidity, preventing abrupt increases in interest rates and maintaining certainty for financing and investment decisions by households and productive sectors.
Indeed, the official highlighted that the financial system maintained a solvency ratio of 18.5% in February 2026, exceeding the regulatory minimum of 10%. Additionally, the non-performing loan ratio was 1.8% in March 2026, while the return on equity (ROE) stood at 21.3% and the return on assets (ROA) at 2.7%.
On the other hand, the governor of the Central Bank of the Dominican Republic (BCRD) noted that the negative supply shock stemming from the armed conflict in the Middle East has caused inflationary pressures due to higher prices for oil and other production inputs. As a result, year-on-year inflation could temporarily rise above the target range of 4% ± 1%, returning to the target range by year-end as the impact of the international energy shock dissipates.
Furthermore, Valdez Albizu affirmed that “coordination between monetary and fiscal policy will help mitigate the effects of the adverse international environment on the Dominican economy. In this regard, the Central Bank of the Dominican Republic (BCRD) will continue to monitor the potential impact of the war in the Middle East, with the aim of promptly adopting measures that ensure compliance with the inflation target and macroeconomic stability.”.
From the banking sector, Cristopher Paniagua, Banco Popular; Steven Puig, Banco BHD; and Fausto Pimentel, Banco Santa Cruz, expressed their willingness to engage in dialogue and collaborate, as in other episodes of adversity, to explore mechanisms that allow them to face the environment of global uncertainty, guaranteeing the financing of the productive sectors.
They also highlighted "the confidence projected by the Dominican economy, reflected in the sustained flows of foreign direct investment and its proven resilience.".
Also present were Leonardo Aguilera, from Banco de Reservas; Fidelio Despradel, from BHD; Javier Rodríguez Zelnick, José Antonio Rodríguez and Juan Carlos Rodríguez, from Banco López de Haro; Jabar Singh, from Banco Scotiabank; Christian Lazarus, from Citibank; Juan Carlos Carniero, from Banesco; Víctor Virgilio Méndez, from Banco Vimenca; Andrés Bordás, from Banco Ademi; Edgar del Toro, from Banco Caribe; and Luis Bogaert, from JMMB Bank.
The meeting was also attended by the Vice Governor, Clarissa de la Rocha de Torres; the manager, Ervin Novas Bello; the Deputy Manager of Operations, Liselotte Reyes; the Deputy Manager of Regulation and Financial Stability, Máximo Rodríguez; the Deputy Manager of the Department of Monetary Programming and Economic Studies, Joel González; the Deputy Manager and the Director of National Accounts and Economic Statistics, Ramón González and Elina Rosario, respectively; the Director of the Department of Regulation and Financial Stability, Carlos Delgado; and the Director of the Treasury, José Perdomo.
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