The Central Bank of the Dominican Republic published an account of Governor Héctor Valdez Albizu’s meeting with the National Council of Private Enterprise (CONEP), where he briefed business leaders on policy conditions amid heightened tariff-related uncertainty in international markets. The update highlighted easing domestic interest rates, available liquidity support, high international reserves, and recently approved macroprudential measures aimed at containing risks from foreign-currency lending. Average lending rates at multiple banks fell from 16.09% in November 2024 to 14.46% in April 2025, while lending rates for productive sectors declined from 14.51% to 13.42% over the same period; deposit rates decreased from 10.21% to 8.72%. The governor attributed the interest-rate declines in part to measures that have facilitated DOP 200 billion since October 2024 through the maturity redemptions of central bank bills and notes, plus DOP 35.355 billion in reserve requirement releases for construction, low-cost housing and homes priced up to DOP 15 million, and micro, small and medium-sized enterprises, of which DOP 14.9 billion has been placed benefiting 2,635 borrowers. International reserves stood at USD 14.751 billion at end-March, equivalent to 11.7% of GDP and more than five months of imports, and the central bank signalled readiness to act to avoid excessive exchange-rate volatility that could jeopardise the inflation target and macroeconomic stability. On the macroprudential side, the Monetary Board-approved package is intended to strengthen the prudential and capital position of financial and foreign-exchange intermediaries amid growth in foreign-currency credit to borrowers that do not generate foreign currency. The framework facilitates access to foreign-currency financing for foreign-currency earners, while limiting foreign-currency lending to non-earners to up to 25% of multiple banks’ foreign-currency liabilities, subject to demonstrating sufficient repayment income and guarantees; it also mandates fair value (mark-to-market) presentation in financial intermediaries’ financial statements from 1 January 2026.
Central Bank of the Dominican Republic 2025-04-16
Central Bank of the Dominican Republic outlines macroprudential package including a 25% cap on foreign-currency lending to non-FX earners and mark-to-market reporting from 2026
The Central Bank of the Dominican Republic reported on Governor Héctor Valdez Albizu’s meeting with the National Council of Private Enterprise, highlighting easing domestic interest rates and macroprudential measures. Average lending rates decreased significantly, supported by DOP 200 billion in central bank bill redemptions and DOP 35.355 billion in reserve requirement releases. The Monetary Board's package aims to strengthen financial intermediaries' positions, limiting foreign-currency lending to non-earners and mandating fair value presentation in financial statements from January 2026.