Releasing reserve requirements and credit oversight in the Dominican Republic

The Monetary Board's authorization to release 35 billion Dominican pesos from banks' reserve requirements (about $583 million) must be accompanied by strict oversight to ensure that credit benefits productive SMEs rather than real estate speculation.

Without public supervision, the liquidity released ends up flowing into high-cost consumer credit rather than industrial development.

Democratizing access to credit is essential to strengthening the domestic business fabric.