FLAR extends invitation to Central Bank governor for membership

Santo Doming0.- The Latin American Reserve Fund (FLAR), led by its executive president José Darío Uribe, has extended an invitation to Héctor Valdez Albizu, the governor of the Central Bank (BCRD), to join the institution. This alliance aims to establish a reserve fund in Latin America to provide financial assistance to its member countries in the event of balance of payments imbalances and potential contingencies, as stated in a release from the monetary authority.

Uribe, formerly the general manager of the Central Bank of the Republic of Colombia, emphasized that FLAR comprises nine countries in the region, including Bolivia, Colombia, Costa Rica, Ecuador, Paraguay, Peru, Uruguay, Venezuela, and the Central Bank of Chile.

He further explained that countries can join FLAR through two types of membership: as full members through the constitutive agreement, or as associated central banks through a direct link agreement between their respective central banks and FLAR.

Additionally, the executive president of FLAR expressed confidence in the Dominican Republic, citing its robust economic growth and political stability.

In response, Valdez Albizu acknowledged this new membership opportunity as an associated central bank and stated that the BCRD would evaluate it in accordance with the provisions outlined in the Monetary and Financial Law.

The governor also highlighted the country’s economic recovery since the second half of 2023, driven by growth in construction, manufacturing, and commerce. He noted that the Economic Activity Index (IMAE) recorded a year-on-year growth of 4.6% in January 2024.

Valdez Albizu also shared positive forecasts for foreign exchange earnings in 2024, including tourism revenue, foreign direct investment, and exports. It is estimated that remittances will reach around US$10, 400 million, tourism income will exceed US$10, 200 million, and foreign direct investment (FDI) flows will surpass US$4, 500 million by the end of the year.

Accompanying the governor during the meeting were Vice Governor Clarissa de la Rocha de Torres, Deputy Manager of Monetary, Exchange, and Financial Policies Joel Tejeda, Deputy Manager of the Monetary Programming Department Joel González, and Deputy Manager of the International Department Brenda Villanueva.