Central Bank of the Dominican Republic sees US$2,072 million drop

Santo Domingo.- The net reserves of the Central Bank of the Dominican Republic (BCRD) fell from US$15,457.7 million at the end of 2023 to US$13,384.9 million by June 2024, marking a decrease of US$2,072.9 million, or -13.4%.

In contrast, reserves saw a rise in 2023, increasing by US$860.6 million from US$14,597.1 million to US$15,457.7 million, a growth of 5.9%.

The BCRD defines international reserves as financial resources in foreign currency that ensure the payment of imported goods and debt service, as well as stabilize the currency’s value. A strong reserve position is considered a sign of financial strength, which helps reduce sovereign risk.

According to International Monetary Fund (IMF) guidelines, net international reserves should cover at least three months of imports and exceed 100% of the monetary base.