The Governor of central bank of the Dominican Republic (BCRD), Héctor Valdez Albizu, accompanied by the Superintendent of Banks, Alejandro Fernández W., held a meeting with the treasurers of the main banks of the Dominican financial system, in which a discussion was held on the current scenario derived of the suspension of financial operations of international banks with Russian entities, due to its military intervention in Ukraine, and other issues.
Valdez Albizu explained that with the announcement by the United States, together with the European Union and the United Kingdom, of the suspension of the SWIFT mechanism (Society for Worldwide Interbank Financial Telecommunication) to make financial transfers to and from Russia, in retaliation for the military invasion of Ukraine, “there is a logical possibility of difficulties in operations with Russian financial institutions, which could have repercussions in some Latin American countries.”
To this end, he urged the treasurers and bank executives present at the meeting to be alert and evaluate the application of preventive measures in this situation to avoid affecting the proper development of the Dominican financial system.
Regarding the issue of cybersecurity, the governor indicated that, given the possibility of a large-scale computer attack, the Dominican Republic has an excellent cybersecurity protection system designed by Israeli specialists, endorsed by the most important US entities. and coordinated by the BCRD, to which most Dominican financial institutions are interconnected.
“We are prepared for this type of threat that has already occurred in some European countries, although we remain constantly alert and ready to offer any assistance and cooperation to all the institutions of the Dominican financial system in prevention work,” said Valdez Albizu.
On the other hand, the governor emphatically expressed the essential requirement of maintaining within orderly market parameters the margins between the purchase and sale of foreign currency through the institutional channels of financial entities, such as internet banking and the window rate, within the framework of a robust, liquid foreign exchange market, which maintains a continuous flow of foreign currency and is transparent in its operation.
The Superintendent of Banks referred to the possible humanitarian situation caused by the need of Dominicans who are in Ukraine and Russia, some residing or studying in one of those two countries, who could be affected by the suspension of the SWIFT code and , therefore, with the impossibility of receiving resources.
He recalled that the measure of cancellation of the SWIFT code has not yet been carried out with all the banks of the Russian financial system, so there are alternative channels that make it possible to assist these Dominicans, which must be available.
Fernández took the opportunity to inform the treasurers that the dissolution process of Bancamérica, authorized by the Monetary Board, is proceeding smoothly, calmly, according to the legal rules and regulations that apply in these cases.
The treasurers who were representing their financial institutions expressed appreciation for the convening of the meeting at a time of international uncertainty. They expressed to the governor and the superintendent their willingness to be alert to the possibility of any cyber threat for the protection of users of the Dominican financial system.
The discussion was attended by the presidents and treasurers Ramón Pimentel, from Banco de Reservas; Fidelio Despradel, from Banco BHD; Javier León, from Citibank; María Angélica Haza, from Banco Popular; Jan Ortiz of Scotiabank; Fausto Pimentel, president of Banco Santa Cruz; and Manuel Martínez, from Banco Santa Cruz.
Also participating were Emilio García, from Banco Caribe; Jorge Abreu, from Banco BDI; Flaudia Martínez, from Banco Vimenca; Isabel García, from Banco López de Haro; Jesús Gil, from Banco Promérica; César Polanco, from Banesco; Andrés Bordas, from Banco Ademi; and Franklyn Escalona and Edgar del Toro, from Banco Lafise.
