The Central Bank of the Dominican Republic (BCRD) clarified on Wednesday that Government’s external debt emissions do not permanently swell the International reservesbecause they have a transitory character and are mainly allocated to the payment of financial commitments and projects of the national budget.
In a statement, the Treasury Department explained that, although the resources of external financing They enter the Central Bank accounts first, these are used immediately to honor external debt or transferred to the reservation bank.
“They do not remain indefinitely in BCRD accounts, so they do not constitute a sustainable increase in International reserves“The institution said.
The agency highlighted, however, that Reservations From the country they have shown solid growth in recent years: they went from 10,751 million dollars in 2020 to 14,208 million dollars at the end of July 2025.
He stressed that these figures are equivalent to 11 % of GDP and more than five months of imports, above the reference parameters of the International Monetary Fund (IMF), which establish a minimum of 10 % of GDP and three months of imports.
The BCRD He attributed this strengthening not to debt, but to the dynamism of currency generating sectors: exports, tourism, foreign investment and remittances.
He said that only in 2024 The Dominican economy produced 43,842 million dollars, and for this year 46,150 million dollars are projected, representing a jump of more than 20,000 million dollars compared to 2020.
- This flow has allowed the central bank to successfully face episodes of exchange volatility. With a deeper and more liquid currency market, the institution has intervened opportunely through auctions, avoiding pressures on macroeconomic stability.
Reservations Management
Regarding the administration of Reservationsthe BCRD recalled that, in accordance with the monetary and financial law 183-02, it invests in safe and liquid assets such as United States Treasury bonds and deposits in financial entities High credit credit. Only in 2023 and 2024, these investments generated annual income exceeding 500 million dollars, which contributed to reducing the institution’s quasifiscal deficit.
With these details, the Central Bank reiterated that The solidity of Dominican reserves rests on the strength of the real economy and in the exchange discipline, not in the temporary flows of external debt.
