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BiggerLeonel Fernández: “The Dollar is soaring, and reserves are shrinking”
Santo Domingo.- Former President Leonel Fernández has raised concerns about the Dominican Republic’s economic trajectory, citing the peso’s sharp devaluation, declining international reserves, and rising interest rates. In his latest Global Observatory column, he warned that these factors threaten businesses, families, and overall financial stability.
Fernández criticized the government’s failure to control exchange rate volatility, noting that the peso has already surpassed the projected depreciation for the entire year, reaching RD$63.44 per dollar. He highlighted that the Central Bank’s reserves have dropped from US$16,200 million in mid-2023 to US$12,605 million in early 2025, weakening its ability to stabilize the economy.
He also warned that rising interest rates are burdening businesses, especially small and medium enterprises. With predictions that the dollar could reach RD$70 by year’s end, Fernández urged authorities to take decisive action to prevent further economic deterioration and restore confidence in the financial system.
4bln is a lot of capital.
Probably worth more details.
Use strategic global partnerships in countries other than the US to strengthen foreign reserves.
Working with foreign Central Banks will improve resource capacity in commodities to stabilise any devaluation.
For example: Conducting multi national operations in coffee from Vietnam to China will improve access to: foreign reserves, coffee, and Asian markets.
That type of bilateral agreement supports profit goals and develops relationships in more population dense areas such as China(1.3 bln people), India(1.4bln ppl), and other countries in the region.
Increased production without shipping can create the traction and attraction to Dominican investments aimed at the States, during this uncertain time.
The pesos is too euro top heavy.
But what is it doing in London? Madrid? Stockholm?
It’s stale. Stale in Europe. Non existent in regions outside of the Carribbean.
Unfortunately, mattresses of cash and now crypto will hit the island, pushing against any deals that are on the table. Essentially, the number of participants in the Dominican Peso cup are too few, too limited, and that doesn’t create sustainable interest in this currency.
Long term currencys like the Yuan, Euro, Dirham, Riyal are legitimate rivals to the Dominican peso, for the opportunity costs in the exchange has to provide a good reason to have that much particular currency; in each specific case.
Therefore, investments in the Yuan, allow for Chinese goods, and some other countries, to be exchanged. European goods. Goods and properties from UAE. Products from KSA.
But if Dominican Republic is recessed in production then the currency volume won’t be there for another country to appear attractive.
Internal circular economic activity, Carribbean activities, and south American activities all have to use the vantage point of keeping some returns in these exchanges.
More than Forex. Forex is unfriendly to the DR. You’ve heard it: ” We are only there for a few weeks anyway AND they take the Dollar, Euro, or Whatever”.
Brands don’t quite exchange this same way.
Look at cigars.
Look at Cuba.
Look at Haiti.
Lots of gitters in the local markets, that have been there for years.