Central Bank increases liquidity to stimulate the economy

DOMINICAN REPUBLIC - In Brief 17 Jun 2025 by Magdalena Lizardo
Yesterday, the Monetary Board authorized the Central Bank to implement a liquidity provision program amounting to DOP 81 billion, aimed at promoting the revitalization of economic activity amid high global uncertainty, upward pressure on interest rates, and slower growth in credit to the private sector. Liquid funds will be provided to the financial system to be channeled as loans to productive sectors with a high impact on economic activity, including construction, commerce, manufacturing, exports, agriculture, and MSMEs. Specifically, the following measures were established: The release of DOP 50 billion from legal reserves to provide credit to productive sectors at a maximum annual interest rate of 9% and a maximum term of two years; The use of DOP 14 billion corresponding to unused funds from the legal reserve release approved on November 21, 2024; and A six-month postponement of DOP 17 billion in rapid liquidity facilities that were originally scheduled to return to the Central Bank between June and December 2025, in order to prevent refinancing at higher interest rates. The Central Bank also provided clarifications regarding the scope of the measure that restricts foreign currency financing for entities that do not generate foreign exchange. .

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