People’s Force warns of inflation, cash shortage and rising Central Bank debt

Santo Domingo.- The People’s Force (Fuerza del Pueblo) has warned that the Dominican economy is facing rising inflation, tighter liquidity, and growing quasi-fiscal debt, arguing that current monetary policies are placing additional pressure on households and small businesses.

Speaking as the party’s newly appointed Secretary of Economic Affairs, Haivanjoe Ng Cortiñas said Central Bank data through July 15, 2026 points to persistent inflationary pressures, a sharper-than-usual reduction in cash circulating among the public, and continued growth in the Central Bank’s debt instruments.

Ng Cortiñas said accumulated inflation has reached 5.7% in 2026, while food inflation stands at 7%, both above the Central Bank’s target range. He argued that rising food prices disproportionately affect lower-income families, which spend a larger share of their income on basic groceries.

The economist also said cash in circulation has declined 8.72% between December and July, compared with seasonal declines of about 5% in previous years. According to him, the reduction suggests a tighter liquidity environment that particularly affects the informal sector, small businesses, and households that rely on cash transactions.

Ng Cortiñas further criticized the continued increase in the Central Bank’s quasi-fiscal debt, noting that outstanding certificates and notes have grown 6.8% so far this year. He argued that the associated interest costs ultimately fall on taxpayers while benefiting financial institutions holding those securities.

He also questioned the recent 7.57% appreciation of the Dominican peso, saying it favors importers but reduces the value of remittances and affects exporters and the tourism sector, whose earnings are largely generated in U.S. dollars.