Comprehensive Financial History Report of the Dominican Republic

Basic Information

• Country ISO Code: DO

• Official Language: Spanish

• Language ISO Code: es

• Current Official Currency: Dominican Peso

• Currency ISO Code: DOP

• Symbol: RD$

• Subdivision: 1 peso = 100 centavos

Monetary History of the Dominican Republic

Early Coins and Monetary System

• After independence in 1844, the first Dominican coins began circulating, coexisting with foreign currencies such as Spanish reales and the widely circulated US dollar.

• In 1865, an attempt was made to align the Dominican currency with the European system by introducing the Dominican franc, inspired by the Latin Monetary Union; however, this was short-lived.

• In the late 19th century, foreign debt and intervention affected monetary stability, with foreign companies controlling parts of the national finances.

Use of the US Dollar and Monetary Reforms

• In the early 20th century, the US dollar was established as legal tender and circulated widely.

• In 1909, the first banking law was enacted to regulate banking operations and authorize branches.

• During Trujillo’s dictatorship (1930–1961), monetary reforms included minting national coins in 1937 and issuing banknotes with designs similar to the US dollar to facilitate the monetary transition.

Creation of the Central Bank and Monetary Consolidation

• In 1947, the Central Bank of the Dominican Republic was established, responsible for issuing the national currency and overseeing monetary policy.

• The Central Bank issued the first series of Dominican banknotes with values equivalent to the US dollar to gradually replace the circulating dollar.

• Since then, the Dominican peso has been the official currency, with the Central Bank regulating its issuance and stability.

Current Coins and Banknotes

• Coins in circulation: 1, 5, 10, and 25 Dominican pesos.

• Banknotes in circulation: 10, 20, 50, 100, 500, 1000, and 2000 Dominican pesos.

• In 1992, commemorative banknotes of 500 and 2000 pesos were issued to mark the 500th anniversary of the discovery of America.

• Designs on coins and banknotes feature national symbols, historical figures, and cultural elements of the Dominican Republic.

Economic Context

• The Dominican Republic has the largest economy in the Caribbean and one of the largest in Latin America, with a growing GDP and diversified economy.

• The Dominican peso is a floating currency, with its value determined in the foreign exchange market, although the Central Bank intervenes to maintain stability.

• Key economic sectors include tourism, agriculture, mining, manufacturing, and financial services.

Summary Table

This report provides a detailed overview of the monetary history of the Dominican Republic, highlighting its evolution from the colonial period and US dollar influence to the consolidation of the Dominican peso under the Central Bank’s management.