Central Bank of the Dominican Republic: Best Central Bank Governance Central America and the Caribbean

For a central bank to function at peak performance, autonomy is crucial. The Central Bank of the Dominican Republic (BCRD) was founded as a decentralised and independent organisation in 1947 according to Dominican monetary and financial law, to be responsible for the establishment of the regulatory regime of the country’s monetary and financial system. BCRD has the legal and institutional strength to enable the independent execution of its policies and ensure the stability of the national currency and economy. BCRD acts as issuer and executor of the exchange and monetary systems, and the implementation of its monetary policies have contributed to the Dominican Republic’s economic growth — and to a significant reduction of national poverty. Since 2012, BCRD has operated under an Inflation Targeting Scheme, which has reduced the level and volatility of inflation in the Dominican Republic, helping to anchor expectations of economic agents around BCRD inflation targets and to increase the credibility of its monetary policy. Human capital is recognised as the bank’s greatest asset, and personnel training is supported through education: the bank provides training programmes, as well as assistance for postgraduate degrees for its staff. The BCRD team is educated, as well as specialised, with some 450 workers holding postgraduate, master, or doctorate degrees. The responsible fiduciary models employed by BCRD have delivered stable economic growth to the Dominican Republic, averaging around six percent over the past four years. BCRD is rated as “stable” by the Fitch rating agency, and achieved a BB rating in long-term, foreign currency Issuer Default Ratings in 2018. The CFI.co judging panel believes the organisational framework of efficiency, ethics, and transparency has contributed to BCRD’s trajectory of success. The Central Bank of the Dominican Republic wins the 2018 Best Central Bank Governance (Central America and the Caribbean) award.

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