DOMINICAN REPUBLIC
Analyst
Magdalena Lizardo
Former Adviser, Ministry of Economy, Planning and DevelopmentDatabanks
Recent Country Insights
Central Bank Reduces Monetary Policy Rate Again and Announces Liquidity Increase
DOMINICAN REPUBLIC · In Brief · 29 Nov 2024
The Central Bank has once again reduced the monetary policy rate, lowering it by 25 basis points to 6% annually, effective December 2024. The permanent facility rate has been decreased to 6.50% annually, while the overnight deposit rate has been set at 4.5% annually. Additionally, this week the C...
Fitch Ratings maintains BB- risk rating with positive outlook
DOMINICAN REPUBLIC · In Brief · 22 Nov 2024
Fitch Ratings has decided to maintain the Dominican Republic's risk rating at BB- with a positive outlook. This marks the same rating assigned in 2023, when the country first received a positive outlook, following a period at BB- with a stable outlook between 2020 and 2022. The rating reflects th...
Country in a wait-and-see stance, after withdrawal of fiscal reform bill
DOMINICAN REPUBLIC · Report · 15 Nov 2024
After the government unexpectedly decided to withdraw the tax reform bill from Congress due to public opposition, Dominican society remains in a holding pattern, awaiting the government’s next steps to ease constraints on public finances. At the time of the withdrawal, the government announced th...
The Central Bank lowers the monetary policy rate once again
DOMINICAN REPUBLIC · In Brief · 01 Nov 2024
For the third consecutive month, the Central Bank has decided to reduce the monetary policy rate by 25 basis points, bringing it down from 6.50% in October to 6.25% annually. Similarly, the rate for the permanent liquidity expansion facility (1-day Repos) has decreased from 7.00% to 6.75% per yea...
No new tax reform proposal will be forthcoming
DOMINICAN REPUBLIC · In Brief · 21 Oct 2024
This afternoon, President Abinader indicated that there is no new proposal for fiscal reform. The government will make all the necessary budget adjustments. He also assured that the government will continue with the implementation of the Fiscal Responsibility Law and the application of the fiscal...
President Abinader to withdraw the Fiscal Modernization Bill from the National Congress
DOMINICAN REPUBLIC · In Brief · 19 Oct 2024 · 3 responses
After facing strong criticism from various sectors of Dominican society, President Luis Abinader has announced that he will withdraw the Fiscal Modernization Bill from the National Congress. He stated that this decision was made because the legislative initiative lacked public support and did not...
Negotiating fiscal reform an uphill battle
DOMINICAN REPUBLIC · Forecast · 17 Oct 2024
The government presented its tax reform proposal, which seeks to increase tax revenues by $2 billion, equivalent to 1.5% of GDP. The tax reform burden will primarily fall on individuals, due to the increase in consumption, income and property taxes, which account for 82% of the additional revenue...
Finally, the Government presented its fiscal reform proposal.
DOMINICAN REPUBLIC · In Brief · 08 Oct 2024
Arguing that the Dominican Republic cannot depend indefinitely on debt to finance public services, and that there is a need for greater spending to fund the provision of public services, the Minister of Finance, Jochi Vicente, presented the fiscal reform proposal yesterday. According to the autho...
The Central Bank lowers the monetary policy rate again
DOMINICAN REPUBLIC · In Brief · 01 Oct 2024
The monetary policy rate in October 2024 will be 25 basis points lower than in the previous month. Yesterday, the Central Bank decided to set the monetary policy rate at 6.50% per year. Additionally, the liquidity expansion facility rate (1-day Repos) is being lowered from 7.25% to 7.00% per year...