The Central Bank announced on Monday, 16 June 2025 it will be injecting RD$81 billion into the monetary system to foster favorable monetary conditions and invigorate economic activity.
The comprehensive RD$81 billion liquidity program, coupled with the adjustments to prudential norms for foreign currency financing, is expected to significantly contribute to the expansion of credit to the private sector and invigorate the Dominican economy, all within a framework of price stability and robust macroeconomic fundamentals.
This comprehensive initiative, approved during the Monetary Board session of Friday, 13 June 2025, aims to bolster key productive sectors and the housing market amidst global uncertainties.
The program’s cornerstone is the release of RD$50 billion in legal reserve requirements, representing 2.4% of eligible liabilities, by the Central Bank of the Dominican Republic (BCRD). These funds are earmarked for vital economic sectors, including construction, manufacturing, exports, agriculture, and micro, small, and medium-sized enterprises (MSMEs). Loans from this allocation will be capped at an attractive 9% annual interest rate with repayment terms extending up to two years.
The Monetary Board’s decision comes in response to heightened global geopolitical conflicts, which have fueled uncertainty and volatility in the international landscape. Domestically, the board noted rising interest rates, moderating credit growth to productive sectors, and the current liquidity levels within the financial system.
“The objective of this program is to provide the financial system with liquid resources to facilitate credit to productive sectors and contribute to boosting the pace of economic growth,” stated a representative from the Central Bank. The measures are being implemented with the confidence that inflation will remain within the established target range of 4% ± 1%, allowing for monetary easing policies to stimulate domestic demand.
In a complementary move, the Monetary Board has also reallocated RD$14 billion in unutilized legal reserve funds from a 21 November 2024, resolution. While originally designated exclusively for low-cost housing and MSMEs, these funds will now be made available to the broader productive sectors, subject to the same favorable conditions of the new release, including the 9% interest rate cap.
Furthermore, the program includes a six-month deferral of RD$17 billion in rapid liquidity facilities (FLR), which were scheduled to be returned to the Central Bank between June and December 2025. This postponement aims to prevent beneficiaries of these loans from facing refinancing at potentially higher interest rates.
The Monetary Board also provided clarity on the scope of limits for foreign currency financing to non-foreign exchange generators. The updated regulations now exclude short-term foreign trade operations, such as those structured with letters of credit or similar instruments, as well as activities related to the tourism sector that generate income in local currency.
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Central Bank
17 June 2025