Countries › Dominican Republic › Guide › 5. FX and capital controls › Hedging the peso: forwards, swaps and who may write them in the Dominican Republic

Hedging the peso: forwards, swaps and who may write them in the Dominican Republic

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Last verified: 2026-10-30 · Status: Changing

Dominican banks may enter derivatives of any kind, and the exchange regulation recognises spot, forward, swap and cross currency swap trades. Exchange agents are barred from derivatives. A company wanting to hedge deals with a multiple bank, and no specific tax rule for hedges was found beyond the general year end treatment of exchange differences.

USD figures use the Banco Central de la República Dominicana reference selling rate of RD$60.9007 per US dollar for 29 October 2026, as shown on its home page on the verification date, rounded to the cent.

Key facts

Who may write FX derivatives	Multiple banks. Exchange agents barred textLey 183-02 art. 40; Reglamento Cambiario art. 19, as of 2026-10-30 · in force
Net open FX position limit	25 % of paid capital and reservesReglamento Cambiario art. 21, as of 2026-10-30 · in force
Limit on daily increase, five day average, lower of 25% or	5000000 USDReglamento Cambiario art. 21 paragraph II, as of 2026-10-30 · in force

The rule

1. Multiple banks may enter derivative contracts of any kind and carry out foreign currency purchases and sales.Ley 183-02 Monetaria y Financiera, art. 40 literals l and m, 2002-11-21 official text · verified 2026-10-30

2. Savings and credit banks may enter derivatives only in national currency.Ley 183-02 Monetaria y Financiera, art. 42 literal j, 2002-11-21 official text · verified 2026-10-30

3. Exchange agents and remittance and exchange agents may not enter derivative contracts of any kind.Reglamento Cambiario, Primera Resolución JM 250911-01, art. 19 literal d, 2025-09-11 official text · verified 2026-10-30

4. Transactions may be agreed with value the same day or on a future date as the parties agree. Future operations may use swaps, futures, forwards or other forms under international practice.Reglamento Cambiario, Primera Resolución JM 250911-01, art. 32, 2025-09-11 official text · verified 2026-10-30

5. The regulation defines forward contracts, with delivery or without delivery, spot trades, FX swaps and cross currency swaps.Reglamento Cambiario, Primera Resolución JM 250911-01, art. 4 literals h, i, j, t, x and y, 2025-09-11 official text · verified 2026-10-30 · changed: The 2025 text added these definitions after public consultation, to align with international terms.

6. Authorized platform participants must register all exchange operations, and operations outside the electronic platform are registered when agreed.Reglamento Cambiario, Primera Resolución JM 250911-01, art. 57 and paragraph II, 2025-09-11 official text · verified 2026-10-30

7. Net foreign currency positions of entities and intermediaries, long or short, are limited to 25% of paid capital and reserves. Excesses must be regularized in two working days.Reglamento Cambiario, Primera Resolución JM 250911-01, art. 21 and art. 22 paragraph, 2025-09-11 official text · verified 2026-10-30 · changed: The Segunda Resolución of 24 March 2025 set the 25% limit. The limit on daily increases applied from 1 April 2025 and the long and short limits from 1 August 2025.

8. Daily net increases in the position may not average, over five consecutive working days, more than 25% of paid capital and legal reserves or US$5,000,000, whichever is lower. The Banco Central may authorize deviations.Reglamento Cambiario, Primera Resolución JM 250911-01, art. 21 paragraphs II to IV, 2025-09-11 official text · verified 2026-10-30

Spot at maturity	Unhedged pesos	Forward result	Hedged pesos
58.34	RD$58,340,000	Gain RD$3,660,000	RD$62,000,000
60.90	RD$60,900,000	Gain RD$1,100,000	RD$62,000,000
63.99	RD$63,990,000	Loss RD$1,990,000	RD$62,000,000

Illustrative one year hedge of US$1,000,000 of dollar sales, at an assumed forward of RD$62.00

Worked example

The forward rate above is an assumption for illustration, not a market quote. A live price depends on the dollar and peso interest gap and the bank's credit line for you. An NDF settles only the difference, so no dollars change hands at maturity.

Step by step

Measure the net exposure over the coming year.
Ask at least two multiple banks to quote, and to show the costs inside the price.
Agree a master contract and credit line.
Book the hedge at inception and mark the position at the fiscal closing with your auditor.

Common traps

A deal with an exchange agent is off limits: the prohibition is in the regulation.
Tax treatment of hedges was not found in a specific rule. Art. 293 speaks of exchange differences on currency owned and on obligations, so get advice on whether an open forward falls inside it.
A hedge on a banking book position does not change the bank's own 25% limit, which can affect pricing at quarter ends.
No published official figures on derivative volumes were found, so liquidity beyond about one year should be tested with a live quote.

Sources

Related: Dominican Republic country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide

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