The Central Bank of the Dominican Republic hosted an International Monetary Fund (IMF) staff visit as part of a consultative process to gather information ahead of the country’s next Article IV mission. Governor Héctor Valdez Albizu briefed the IMF team on recent macroeconomic performance, the monetary policy stance and liquidity measures, and key financial stability indicators. The central bank reported 2024 real GDP growth of 5.0% and inflation of 3.35% (core inflation 4.01%), with 2025 growth expected at around 4.5% to 5.0%. It cited February 2025 year-on-year inflation of 3.56% and core inflation of 4.21%, noting inflation has remained within the 4% ± 1% target range for 15 months and is forecast to stay within the band over the policy horizon. The policy rate was cut by 125 basis points in the second half of 2024 to 5.75%, alongside measures to boost liquidity including extending repo facilities up to 28 days, redeeming around DOP 140 billion in central bank securities in Q4 2024, and releasing DOP 35.355 billion of reserve requirements for housing. Financial system metrics cited included a 17.4% solvency ratio at end-2024 (against a 10% regulatory minimum), ROE of 23.2%, ROA of 2.8% in January 2025, and a non-performing loan ratio of 1.5%. International reserves exceeded USD 14.9 billion at end-February 2025 (11.6% of GDP and 5.4 months of imports), and the Dominican peso recorded 1.9% cumulative depreciation in the first two months of 2025, which the central bank linked to seasonal and precautionary FX demand. The IMF delegation is scheduled to hold a week of consultations with economic institutions to support preparation of the forthcoming Article IV engagement.

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