He Central Bank of the Dominican Republic (BCRD) published yesterday an analysis on the measures of monetary policy and financial implementation implemented in 2024, highlighting its contribution to increasing the liquiditythe reduction of interest rates and the stability of the financial system.
In 2023, the BCRD began a monetary easing after placing the inflation within the target range of 4% ± 1%. Although in the first months of 2024 international conditions and electoral uncertainty led to a pause in the reduction of the Monetary Policy Rate (TPM), the economy managed to maintain stability in the exchange rate and good macroeconomic performance.
During that year, the dominican peso It depreciated only 5%, less than in other economies in the region.
From August 2024, thanks to minors inflationary pressures and reductions in rates Internationally, the BCRD resumed the MPR cuts, accumulating a decrease of 275 basis points since May 2023. These measures, along with other initiatives, boosted economic dynamism.
The BCRD implemented actions to strengthen the liquiditysuch as: expansion of the repo facilitieselimination of provisions for interbank operations, reduction of the balance of securities in circulation by 80,000 million pesos, equivalent to 2 percentage points of GDP. Also, the release of 35,355 million pesos in legal reserve resources for loans for housing and MSMEs.
The measures provided 175,000 million to the financial systemwhich generated higher levels of liquidity and reductions in interest rates interbank and banking.
The publication also highlights in 2024 that the credit portfolio Private sector in national currency grew by 10.4%, with an increase of 170,000 million pesos. and he growth of the microbusiness (15.3%), home acquisition (11.9%), construction (10.2%) and commerce (10.1%) sectors, which led the increases.
System assets
The assets of the financial system increased 10.3%, some 358,000 million pesos, while the deposits They grew 11.3%, which totaled 296,000 million pesos, which reflects confidence in the system. Furthermore, the solvency ratio reached a robust 17.5%, exceeding the legal requirement. “The timely implementation of monetary measures and the maintenance of stability macroeconomic conditions contributed to the good performance of the financial system Dominican Republic during 2024, being one of the pillars of economic expansion during the past year,” the document highlights.
5%
It is the potential for economic growth of the Dominican Republic, according to the Central Bank.
Inflation
The institution reported that the inflation closed at 3.4%, within the target range, and the growth economic remained close to 5%. In addition, he highlighted that international reserves reached 13,388 million dollars, exceeding the recommendations of the International Monetary Fund (IMF).
“The monetary strategy of Central Bank of the Dominican Republic was successful, achieving the constitutional objective of preserving the stability of prices”, it was highlighted.
Outlook for 2025
The BCRD establishes that the models of forecasts indicate that the inflation general and underlying would remain within the target range of 4% ± 1% during 2025.
The issuing entity will continue to monitor external and national conditions to evaluate the spaces that allow the process of monetary easing and support the growth of economic activity around its potential for this year.
The DR financial system remains highly profitable and capitalized, with return on equity (ROE) indicators around 23% and return on assets (ROA) of 2.7%. Following these results, the financial system registered a solvency index of 17.5% as of October 2024, higher than the 10% required by law.
