Central Bank governor announces measures on the way to stimulate economy

Central Bank Governor Hector Valdez Albizu was in Santiago on Wednesday, 24 May 2023 where he explained to the business community the new measures to revive growth in the country. The pace of growth had slowed as the Central Bank took action to reduce imported inflation earlier in the year.

Valdez Albizu explained that given the influx of foreign currency that was leading to an appreciation of the Dominican peso, the Central Bank has been buying important amounts of dollars so that the competitiveness of the external sector is not affected. He said the Central Bank made net purchases of foreign currency for US$1.6 billion, which has contributed to the strengthening of international reserves that stand at around US$16.3 billion to date.

He also announced a decrease in the monetary policy interest rate now that inflation is within the target range of 4% +1% at the end of May. The Central Bank governor says the time is now to relaunch growth during the rest of the year while ensuring macroeconomic stability.

Valdez Albizu gave the conference “Economic Current Events and Prospects 2023” at the annual luncheon organized in Santiago de los Caballeros by the Association of Industrialists of the Northern Region.

He said the tourism industry is spearheading the economy, generating revenues of more than US$8.4 billion in 2022 with the arrival of 8.5 million non-resident visitors, of which 7.2 million arrived by air and 1.3 million on cruise ships.

Referring to the northern region, Valdez Albizu indicated the importance of the fact that during 2022, it has received more than 1.1 million tourists through its airports and 80% of the cruise ship passengers.

Regarding remittance flows, in the same year, the arrival of almost US$10 billion was recorded throughout the national territory, of which 40% was destined for the northern Cibao region.

The governor of the Central Bank expressed his confidence that the country will continue to successfully overcome future challenges and preserve the macroeconomic stability, supported by the strength of its economy and the commitment of its productive sectors.

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El Caribe

25 May 2023