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September 4, 2025
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Why do international reserves matter? What they mean for your pocket

¿Por qué importan las reservas internacionales? Lo que significan para tu bolsillo

The Central Bank of the Dominican Republic (BCRD) reported that International reserves They reached the US $ 14,208.7 million as of July 31, 2025, which represents approximately the 11 % of the gross domestic product (GDP) And more than Five months of imports.

These levels exceed the metrics recommended by the International Monetary Fund (IMF), which suggest at least 10 % of GDP and three months of imports.

But in flat terms what these funds are for and where its importance lies:

Why are international reserves important?

International reserves are active in foreign currency that the Central Bank uses for:

Central Bank of the Dominican Republic explains use of international reserves

Guarantee the stability of the exchange rate.

Support international payments of the country.

Strengthen the trust of investors and creditors.

Serve as a shock absorber to external crisis or financial imbalances.

The BCRD attributes the strengthening of reserves to structural factors, not to transient debt flows. Among the main engines are:

  • National and Free Zones Exports
  • Tourism
  • Direct foreign investment (FDI)
  • Remittances

In 2024, these sectors generated US $ 43,842 million in currenciesand it is projected that in 2025 that figure reaches the US $ 46,150 millionwhich represents an increase of more than US $ 20,000 million compared to 2020.

Technical Management and Profitability

The Central Bank manages reserves under criteria of Safety, liquidity and profitabilityinvesting in assets such as:

  • US Treasury Bonds. UU.
  • Deposits in the Federal Reserve
  • International Payment Bank

For 2023 and 2024, the portfolio generated income higher than US $ 500 millionwhich contributed to reducing the quasifiscal deficit of the BCRD of 1.4 % of GDP in 2020 to 0.8 % in 2024.

Conclusion: International reserves of the Dominican Republic reflect a more resilient economy, with solid foundations and efficient technical management. Its growth not only strengthens financial stability, but also positions the country with greater capacity to face global challenges.

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