Top officials from the Dominican Republic’s Central Bank, Treasury, and Banking Superintendence met with leaders of the country’s financial sector to review the national economy. The meeting, which included Governor of the Central Bank Héctor Valdez Albizu, Treasury Minister Magín Díaz, and Banking Superintendent Alejandro Fernández, sought to review the economy’s performance and establish a unified approach to maintaining macroeconomic stability.
The meeting comes amid public concern over the recent dip of the Dominican peso against the US dollar. Valdez Albizu assured the public that the fluctuation is caused by a seasonal effect. He explained that there are no macroeconomic factors to justify the recent volatility, pointing to the annual surge in demand for US dollars in September as companies restock inventories for end-of-year sales.
Meanwhile, the fluctuation is a positive for tourist spending, exporters and buying power of remittances sent from abroad.
Valdez Albizu highlighted that the country’s foreign currency-generating activities have remained robust, with foreign currency inflows projected to exceed US$46.16 billion by the end of 2025. He added that direct foreign investment is expected to reach US$4.86 billion in 2025, which would easily cover the projected current account deficit.
The Central Bank Governor pointed out that the average exchange rate for the first eight months of the year was approximately RD$61.20 per US dollar, which remains within the RD$63.11 average projected for the 2025 National Budget.
Valdez Albizu emphasized the importance of a coordinated effort to preserve stability and foster investor confidence in an uncertain global climate. He noted that the economy is expected to continue its gradual recovery, with a projected growth of around 3% in 2025. This growth could accelerate as public investment gains momentum and a more flexible monetary policy is implemented.
Treasury Minister Magín Díaz echoed this sentiment, underscoring the government’s commitment to boosting the economy through the coordinated use of economic, monetary, and fiscal policies, as well as an increase in public investment. Similarly, Banking Superintendent Alejandro Fernández expressed confidence that recent monetary measures will lead to lower interest rates, which will help reactivate private sector credit, a key driver of economic growth.
Leaders from the financial sector voiced their support for the government’s initiatives. Christopher Paniagua, CEO of Banco Popular, affirmed the financial system’s readiness to back the authorities’ efforts to maintain monetary, economic, fiscal, and exchange stability. Luis Molina Achécar, President of Centro Financiero BHD, emphasized the collaborative spirit of the meeting, highlighting the commitment to finding joint solutions to future challenges.
The Central Bank reported that during the meeting, Valdez Albizu also reported that the financial sector remains strong, well-capitalized, and highly profitable. He noted that the return on equity (ROE) was 21.80% and the return on assets (ROA) was 2.61% as of July. The delinquency rate was just 1.9% in June, and the solvency ratio stood at 18.39%, well above the 10% regulatory minimum.
The Central Bank Governor also highlighted the reduction in bank interest rates following the liquidity measures implemented in May. He stated that the interbank rate for multiple banks has dropped from 13.19% to 8.59%, a reduction of 460 basis points. The passive rate decreased by 212 basis points, from 9.63% to 7.51%, while the active rate saw a smaller reduction, from 14.99% to 14.19%.
The Central Bank Governor announced that on Thursday, 11 September 2025, the Monetary Board will review an amendment to the Exchange Regulation, which has been under public consultation for approximately 30 days.
Read more in Spanish:
Central Bank
El Nacional
Listin Diario
11 September 2025