Economy booming in Dominican Republic
The Dominican Republic is rich in natural resources such as cocoa, coffee, fruits, vegetables and precious metals.
A healthy financial system is the backbone of any economy. The financial sector is playing a major role in driving GDP growth. As of June 2015, the financial services sector makes up roughly 4% of total GDP. The financial services industry grew 7.4% in the first quarter of 2015. The Dominican capital markets have also been an important source of funding for both private companies and government institutions. The Dominican government successfully auctioned US$3.5 billion in sovereign bonds during the first half of 2015 (global capital markets).
Dominican financial institutions (Banks, Credit Unions, and Savings & Loans) are well-capitalized and solvent. The average capital requirement for financial institutions operating in Dominican Republic is 11%. The average solvency ratio for the financial sector as whole is 18% (well above the minimum capital requirement).
Last but not least, the USD/DOP pair has been very stable since the beginning of this year. The DOP has depreciated only 0.4% (YTD), which is very low for an emerging market economy.
Source: dominicantoday.com
