Central Bank of the Dominican Republic

The Central Bank of the Dominican Republic was established by the Monetary and Banking Law of October 9, 1947, and today operates under Organic Law No. 6142 of December 29, 1962, which charges it with promoting monetary, foreign exchange and credit conditions favorable to the stability and development of the national economy. Headquartered in Santo Domingo, it manages the Dominican peso, sets bank reserve requirements and lending limits, and issues its own negotiable securities as monetary policy tools. The wholly state owned institution helped steer the country through a severe 2003 banking crisis whose bailout costs reached roughly 21 percent of GDP and triggered currency depreciation and capital flight that took until 2005 to stabilize.