REGULATIONS

On currency and monetary issuance.  Monetary and Financial Law No. 183-02 dated November 21, 2002.

Banknote No. 24.  On the currency’s legal regime

Banknote No. 25.  On the  issuance of currency

a)                 Ability to issue currency

b)                 Exchange and withdrawal

c)                 Denominations

d)                 Legal protection

On Currency and Monetary Issuance

Article No. 24.  On the currency’s legal regime.  The national currency, as defined by the Constitution of the Dominican Republic and in the denominations currently in circulation, is the only legal tender for full and final settlement of all public and private, obligations within the entire national territory.  The national currency is represented in the form of bill banknotes and coins and its capacity for full and final settlement corresponds to its face value.  The banknotes will have the engraved signatures of both the Governor of the Central Bank and the Secretary of Finance of the Dominican Republic.

Monetary debts will be paid with the currency originally agreed upon and, in the absence of said agreement, in the national currency.  With regard to official business, accounting for public and private entities will be expressed exclusively in terms of the national monetary unit, which shall be divided in one hundred (100) cents.

Article No. 25 on the Currency’s Issuance.

a.                   Ability to Issue Currency.  The issuance of the banknotes and coins which represent the national currency is the exclusive and non-delegatable right of the Central Bank, which will determine the amount of banknotes and coins in circulation.  The Central Bank is responsible of satisfying the demand for banknotes and coins representing the national currency and circulating within the country, in order to guarantee the normal performance of economic transactions.  The demand must be met in a timely fashion and with banknotes and coins in perfect condition, for which the Central Bank must apply procedures that take international standards into account.

b.                   Exchange and withdrawal.  The Central Bank will retrieve from circulation banknotes and coins that are worn by use, exchanging them for others which are suitable for circulation.  The Central Bank is not, however, obligated to exchange banknotes and coins impossible to identify, banknotes which have lost more than two fifths (2/5) of their surface, as well as those with legends inscribed on them, and coins with show signs of  filing, cuts or perforations or which show any other imperfections not caused by natural wear.  The Central Bank may retrieve said banknotes and coins with no compensation and will proceed to withdraw them from circulation and deposit them into its general reserve account.  The Monetary Board will determine, according to regulation, the manner in which these banknotes and coins will be destroyed by following procedures that will guarantee complete control and security over the complete destruction of same.  The metals resulting from the melting of coins can be sold by the Central Bank and the proceeds of the sales will be registered as income.

c.                   Denominations.  The Monetary Board will determine, as established by Law, the denomination and features of the banknotes and coins of legal tender, as well as the withdrawal of issued series currently in circulation.  The changes or deletions of issuance must be announced to the general public with enough advance notice to adequately inform the population.

d.                   Legal Protection.  All physical or judicial persons, national or foreign, are prohibited from issuing, reproducing, imitating, counterfeiting or simulating banknotes and coins of legal tender, either totally or partially, through any means, support or form of representation, without prejudice to what has been established in paragraph  a) of this Law.  Anyone not complying with what has been established within this paragraph will be sanctioned by the Central Bank, independently of the corresponding criminal sanctions, through the confiscation of the banknotes and coins reproduced, imitated, falsified or simulated, as well as of the proceeds resulting from the aforementioned infractions, and the imposition of a fine equal to ten (10) times the face value of the legally issued equivalent of said banknotes and coins.  The Monetary Board will dictate the appropriate Regulation to prevent and sanction any violation as stipulated herein.

On Currency and Monetary Issuance

Bill No. 24.  On the currency’s judicial system.  The national currency, as defined by the Constitution of the Dominican Republic and within the denominations currently in circulation, is the only legal tender with thorough liberating effects for all public and private delegations, within the entire national territory.  The national currency is represented in the form of bills and coins and its liberating effect is linked to its face value.  The bills will have the copied signatures of both the Governor of the Central Bank of the Dominican Republic and the Secretary of Sate of Finance.

Monetary debt will be paid with the currency originally agreed upon and if such agreement is lacking, in the national currency.  With regards to official issues, accounting for public and private entities will be expressed exclusively in terms of the national monetary unit, which shall be divided in one hundred (100) cents.

Bill No. 25 on the Currency’s Issuance.

a.                   Ability to Issue Currency.  The issuance of the bills and coins which represent the national currency is the exclusive and non-delegatable right of the Central Bank, which will determine the amount of bills and coins in circulation.  The Central Bank is responsible of satisfying the demand for bills and coins representing the national currency and circulating within the country, in order to guarantee the normal management of economic transactions.  The demand must be met within a prudent timeframe and with bills and coins in perfect conditions, for which the Central Bank must meet with procedures that take international standards into account.

b.                   Exchange and withdrawal.  The Central Bank will retrieve from circulation bills and coins that are worn by use, by exchanging them for others which are eligible for circulation.   The Central Bank is not, however, obligated to exchange bills and coins impossible to identify, bills which have lost more than two fifths (2/5) of their surface, as well as those with legends inscribed on them, and coins with show signs of  filing, cuts or perforations or which show any other imperfections not caused by natural wear.  The Central Bank may retrieve said bills and coins with no compensation and will proceed to withdraw them from circulation and deposit them into its general reserve account.  The Monetary Fund will determine the manner in which these bills and coins will be destroyed, according to regulation, by following the procedures that can guarantee complete control and security over the integral destruction of the same.  The metals resulting from the melting of coins can be sold by the Central Bank and the result of the sales will be registered as income.

c.                   Denominations.  The Monetary Fund will determine, based on the Law, the denomination and features of the bills and coins of legal tender, as well as the elimination of issuance currently in circulation.    The changes or deletions of issuance must be announced to the general public with enough advanced notice to properly forewarn the population.

d.                   Legal Protection.  All physical or judicial person, whether national or foreign, is prohibited from issuing, reproducing, imitating, falsifying or simulating bills and coins of legal tender either totally or partially, through any means, support or form of representation, without prejudice to what has been established within issue  a) of this Bill.  Whosoever does not meet with what has been established within this issue will be sanctioned by the Central Bank, independently of the corresponding criminal sanction, through the retrieval of the bills and coins that have been reproduced, imitated, falsified or simulated, as well as of the result of the aforementioned infractions, and a fine equal to ten (10) times the face value that said bills and coins would have in case they were legally issued.  The Monetary Fund will dictate the appropriate Regulation to prevent and sanction the violation of the present issue.