2018 Article IV Consultation-Press Release and Staff Report


2018 Article IV Consultation-Press Release and Staff Report

Fund Relations

(As of April 30, 2018) Membership Status Joined December 12, 1978; Article VIII.

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Latest Financial Arrangements:

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Projected Payments to the Fund (SDR Million):1/

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Exchange Rate Arrangement: Dominica is a member of the Eastern Caribbean Currency Union, which has a common central bank, the Eastern Caribbean Central Bank, and currency, the Eastern Caribbean dollar. Since July 1976, the Eastern Caribbean dollar has been pegged to the U.S. dollar at the rate of EC$2.70 per U.S. dollar. Dominica has accepted the obligations of Article VIII, Sections 2, 3, and 4. Dominica maintains an exchange system free of restrictions on the making of payments and transfers for current international transactions.

Safeguards Assessment: Under the Fund’s safeguards policy, the Eastern Caribbean Central Bank (ECCB) is subject to a full safeguards assessment on a four-year cycle. An update assessment was completed in April 2016 and found that the ECCB has maintained generally strong controls over its key operations. External audit and financial reporting practices remain sound. The ECCB financial statements are compliant with International Financial Reporting Standards and are published on a timely basis. The internal audit function needs to be reformed to align it with leading international practices and oversight could be further strengthened by enhancing the financial expertise of the audit committee.

Article IV Consultation: The last Article IV consultation was concluded by the Executive Board on May 12, 2017. Dominica is on a 12-month cycle.

Technical Assistance: Dominica has received significant technical assistance from Caribbean Regional Technical Assistance Center (CARTAC) and the IMF. Technical assistance missions focused on tax reform, revenue administration, expenditure rationalization, financial sector, and Public Financial Management (PFM):

PFM Missions

  • June 2013: Deliver workshop on cash flow forecasting and planning

  • November 2013: Restructure cash flow unit and continue to build capacity and expertise in bank reconciliation

  • January 2014: Investigate and resolve data integrity issues with Smart-Stream

  • January 2014: Wrap up bank reconciliation and ascertain further needs

  • March 2014: Work with M. Smith to review Dominica

  • March 2014: Follow-up on earlier TA on bank account reconciliation

  • March 2014: Introduce new Adviser

  • March 2014: Assist authorities to build capacity for new Procurement staff

  • April 2014: Assist Dominica procurement in continuing to navigate and implement action plan

  • May 2014: Finalize implementation of updated automated bank reconciliation software

  • July-August 2014: Assist in closure of 2013/14 financial year and carry forward un-reconciled bank reconciliation discrepancies

  • September 2014: Assist with planning of 2015/16 budget and develop draft budget call circulars

  • October 2014: Examine and provide recommendations to strengthen oversight and monitoring of State Owned Enterprises

  • February 2015: Undertake a gap analysis of the Internal Audit systems

  • March 2015: Deliver presentations and hold discussions on redraft of PFM Legislation

  • March 2015: Provide TA to Budget Department with the revised budget process and develop Cabinet Decision Table

  • March 2015: Develop Concept Note for undertaking a PEFAQ in October 2015

  • August 2016: Building a PFM Action Plan following the recent PEFA

  • November 2016: PFM Legislation/Regulations Revisions

  • March 2017: Treasury Assessment

Revenue Administration Missions

  • June 2013: Tax and Customs Administration

  • June 2013: Tax and Customs Administration

  • June 2013: To work on outline for Regional Audit Manual with STX Brian Dawe

  • August 2013: Assist Dominica Inland Revenue and Customs Department with their Risk Management program (Support to SEMCAR)

  • September 2013: Continue to assist with IRD reorganization and capacity building in audit

  • September 2013: Introductory Meetings with Senior IRD Officials; liaise with STX Dawe on IRD reorganization

  • September 2013: to introduce new LTX Advisor to Senior IRD officials; liaise with STX Dawe on IRD reorganization

  • October 2013: Liaise with STX Macleod on PAYE Administration support

  • October 2013: Deliver PAYE audit training; assist with development of Audit program and procedures circulars

  • November 2013: Work at home: Development of Audit Manual

  • November 2013: Co-facilitate regional seminar on Tax Arrears Collections and Enforcement

  • November 2013: Co-facilitate the Regional Collections Enforcement Seminar for Supervisors

  • November 2013: To continue to assist with IRD reorganization and capacity building in audit

  • November 2013: To assist in the development and upgrade of collections enforcement procedures

  • November 2013: Supporting the development of Valuation procedures and policy for the Customs Administration

  • January 2014: Help design the IRD Corporate Strategic Plan

  • March 2014: Post Clearance Audit Training and Support to the Customs Administration

  • April 2014: Extension of Tax Administration Adviser

  • April 2014: Project Management Support and Building Audit Capacity – IRD reorganization project

  • September 2014: To conduct Tax review

  • September/October 2014: Review of Dominica Income Tax

  • January 2015: Building Capacity and Supporting the Establishment of the HQ Design Monitoring and Large and Medium Taxpayer Sections (LMTS)

  • January 2015: DMS and Large and Medium Taxpayers compliance measurement

  • March 2016: Small Business Reform – Revenue Modelling for VAT and Presumptive tax

  • August 2016 : To Provide Training and Guidance to Strengthen the Post-Clearance Audit Function in Customs

  • September 2016: Meeting with the Comptroller of Customs to Discuss Technical Assistance Needs

  • October 2016: Building Capacity in Data Analytics and Computer-Assisted Audit Techniques

  • October 2016: Compliance management framework

  • November 2016: Develop Taxpayer Service Strategy

  • February 2017: Tax Administration-Assist IRD to finalize its taxpayer services strategy

Financial Sector Missions

  • December 2013: Insurance Supervision and Credit Union Supervision

  • January 2014: Follow-up mission—onsite review of offshore banks and continued training of Supervisors

  • April 2014: Consolidated Supervision – Training

  • November 2014: Risk Based Supervision and Consolidated Supervision

  • April 2016: Risk Based Supervision

  • August 2016: Supervisory Interventions Banks and Non-Banks

  • November 2016: Risk-Based Supervision Training

  • January 2017: Development of a Stress-Testing Framework and Methodology for Credit Union Sector

  • February 2018: Crisis Management Plan for the Non-Bank Sector Economic and Financial Statistics

  • May 2013: National Accounts – Quarterly

  • April 2014: Joint CARTAC/STA IIP Mission

  • February 2015: Training for Survey Respondents (ECCU Countries)

  • June 2016: Balance of Payments Statistics and IIP

  • June 2017: External Sector Statistics

  • January 2018: National Accounts

Macroeconomics and Programming Analysis

  • November 2013 – Needs assessment of Macroeconomic Policy Unit; create a forward technical assistance work plan

  • January 2014: To assist authorities with their medium-term macroeconomic framework

  • November 2014 – Produce framework to update macroeconomic projections on a quarterly basis

  • February 2015: Technical assistance to train staff in macroeconomic and fiscal forecasting as well as to prepare for IMF Article IV visit

  • February 2016: Assist Macro Policy unit with update of their macroeconomic projections for upcoming Budget

  • November 2016: Coordinate Macro Program with Macro Advisor

FSAP: A joint IMF/World Bank team performed an assessment of the financial sector of the member states of the ECCU, in two missions—September 1–19 and October 20–31, 2003. The principal objective of the missions was to assist the authorities in assessing the development needs and opportunities for the financial sector and identifying potential vulnerabilities of financial institutions and markets to macroeconomic shocks, as well as the risks to macroeconomic stability from weaknesses and shortcomings in the financial sector. The Financial System Stability Assessment (FSSA) was discussed by the Executive Board on May 5, 2004, and subsequently published on the IMF’s external website, including the Report on the Observance of Standards and Codes (ROSC) on Banking Supervision.

AML/CFT: The most recent assessment of Dominica’s AML/CFT regime was conducted by the Caribbean Financial Action Task Force in 2009. Since this assessment, Dominica has taken steps to strengthen its AML/CFT framework. Dominica has not yet been assessed against the prevailing 2012 FATF standard which includes an emphasis on the effectiveness of the framework in place.

Relations with Other International Financial Institutions

Statistical Issues

(As of April 30, 2018)


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Dominica: Table of Common Indicators Required for Surveillance

(As of April 23, 2018)

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Dominica is a member of the Eastern Caribbean Currency Union, in which the common currency of all member states (E.C. dollar) is pegged to the U.S. dollar at US$1 = EC$2.70.

Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.

Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

Foreign, domestic banks, and domestic nonbank financing.

The general government consists of the central government and state and local governments.

Currency and maturity composition are provided annually.

Data is not available from the authorities.

Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A), Irregular (I); Not Available (NA); Not Applicable (n.a.).


Based on existing use of resources and present holdings of SDRs.

Dominica: 2018 Article IV Consultation-Press Release and Staff Report
Author: International Monetary Fund. Western Hemisphere Dept.