This Friday, the Central Bank celebrates 73 years as a regulatory entity of the financial system of the Dominican Republic, but do you know what are the functions of this organism?
Many would think that their only goal is regulate financial intermediation entities, issue banknotes in Dominican pesos or manage currency exchange.
However, the functions of the Central Bank go further. One of them is counteract any inflationary trend, that is, to maintain price stability in the Dominican Republic, for which an inflation target is established, which is a reference indicator in this regard.
The Central Bank also executes monetary and exchange policies, in accordance with the Monetary Program approved by the Monetary Board through the use of the instruments established in the Monetary and Financial Law and compile, prepare and publish statistics of the balance of payments, of the monetary sector, Real and financial sector, and others that are necessary for the fulfillment of its functions. On its website, citizens can obtain statistics on economic activities such as tourism, remittances, the labor and exchange market, interest rates, among others.
The Central Bank, as published on its website, proposes to the Monetary Board the projects of monetary and financial regulations in monetary, exchange and financial matters and analyzes the Dominican financial system as a whole, estimating its level of systemic risk.
In addition, it imposes sanctions for deficiency in the legal reserve, non-compliance with the operating rules of payment systems or other sanctions established in the Monetary and Financial Law.