Economist Daniel Toribio raised on Thursday some “worrying” aspects of the Dominican economy.
In an interview conducted in the program One + one From Channel 2 Teleantillas, conducted by journalists Adalberto Grullón and Millizen Uribe, Toribio said that, contrary to the provisions of financial organizations, the Dominican economic apparatus presents certain critical foci.
«The indicators that I handle generate concern. I think that the Dominican economy is subjected to stress due to a series of opposing variables, which generates a certain level of nervousness, ”said Toribio.
You can read: bCentral Anco publishes financial stability reports, predicts a 2025 solid
Worrying signals of the Dominican economy The specialist highlighted the following “worrying” signals:
1. Loss of Central Bank reservations “In the last two years we have lost more than two billion dollars in reservations,” Toribio said regarding the situation.
2. Decreased monetary policy / Interest rate increase In this sense, the economist explained that since 2023 the Central Bank “has been decreasing the monetary policy rate, which is an indicative reference rate, but the market interest rate has not dropped.” “The interest rate we have today is the highest of the last ten years,” he added.
3. Deserted auctions / dollar rise Regarding the auctions, the expert stressed that the Central Bank has declared two auctions equivalent to more than 10 billion pesos, which presses the dollar rate.
«The dollars are limited. You can’t buy the dollars you need right now, and many times they don’t sell you more than ten thousand dollars, ”he emphasized.
“The Central Bank has tried to apply what is called the impossible trilogy, which is to control the exchange rate, control the currency flow and keep inflation low,” he said. Toribio added to the alerts the placement of bonds by the Ministry of Finance in Dominican pesos.
He also clarified that the decrease in inflation is not equivalent to a reduction in prices, which, they have increased. “When they tell you that inflation dropped, it is not that prices fell, it is that the increase in prices is lower,” he explained.
The specialist also expressed concern about the decrease in the economy by 4.5%, “below the normal average of the Dominican economy, which is 5%.”
Central Bank Report
The Central Bank of the Dominican Republic (BCRD) published the financial stability reports as of September 2024 and at the end of 2023, which examine the recent development and perspectives of the financial sector of the Dominican economy by 2025, in accordance with the provisions of The third resolution of the Monetary Board, issued on January 30, 2025.
The document indicates that the results of the exercises suggest that the delinquency index will be located around 1.5% in 2025, being stable around this value in 2026. In turn, even in very adverse economic scenarios, the delinquency index It would show rapid standardization, and the solvency indicator would remain above the minimum level of 10%, in accordance with the provisions of Law No. 183-02 Monetary and financial, reflecting the resilience of the Dominican economy as a whole and the strength of the financial system.
He added that “stress tests carried out to financial intermediation entities reveal that most entities have appropriate levels of sufficiency.
