The Central Bank of the Dominican Republic published clarifications on a package of Monetary Board prudential measures approved on 24 March 2025 to tighten controls around foreign-currency credit and foreign-exchange risk in financial and foreign-exchange intermediaries. The measures revise rules on foreign-currency lending by distinguishing between foreign-currency generators, which can access foreign-currency loans without limit, and non-generators, which can access foreign-currency credit in consolidated terms up to an amount equivalent to 25% of each financial intermediary’s total foreign-currency deposits and funding, subject to demonstrating sufficient income flows or guarantees to repay. Within that cap, the framework prioritises access for non-generators in specified strategic sectors such as energy generation and supply, oil refining, and importers of goods and services, while moderating foreign-currency lending to non-generators for housing purchases and personal consumption. Complementary prudential requirements increase risk weights by 1.5 times for foreign-currency loans to non-generators, raising the capital backing required for those exposures. The Monetary Board also adjusted net foreign-currency position limits to 25% of paid-in capital and legal reserves, set a maximum average weekly increase in the net position of USD 5 million (equating to up to USD 25 million per week), and indexed minimum capital for exchange agents and remittance and exchange agents to RD$23.0 million for category A and RD$11.5 million for category B. Separately, the release reiterated that mark-to-market presentation in financial intermediaries’ financial statements is due to take effect from 1 January 2026, and that the Monetary Board, the central bank and the Superintendency of Banks will monitor compliance with the regulatory measures.

Original source View in tracker