SANTO DOMINGO. -The Central Bank of the Dominican Republic (BCRD) reported that, between January and August 2024, remittances received reached US$7,112.5 million, increasing US$342.6 million (5.1%) compared to the same period of the previous year.
The Central Bank of the Dominican Republic (BCRD) reported that remittances totaled US$952.3 million in August, a 10.7% increase compared to August 2023. "It is important to highlight that these resources provided by the Dominican diaspora abroad have a multiplier effect on consumption, investment, and financing for the country's most vulnerable sectors," the entity emphasized in a statement on Sunday.
The BCRD explained that the economic performance of the United States was one of the main factors influencing remittance flows, as 82.0% of formal flows in August, totaling US$713.5 million, originated from that country.
On the one hand, the overall unemployment rate in the United States was 4.2% in August, a slight decrease from the 4.3% recorded in July 2024, with the creation of 142,000 new jobs. Additionally, the Institute for Supply Management's (ISM) non-manufacturing Purchasing Managers' Index (PMI) registered a value of 51.5 in August, slightly above the 51.4 observed in July, indicating the expansion of the services sector, where a large part of the Dominican diaspora is employed.
The Central Bank of the Dominican Republic (BCRD) also highlighted the receipt of remittances through formal channels from other countries in August, such as Spain, which received US$59.1 million, representing 6.8% of the total. Spain is the second largest recipient of remittances from the Dominican diaspora abroad. Italy and Haiti followed, receiving 1.3% and 1.1% of the total flows, respectively. Other countries receiving remittances include Switzerland, Canada, and Panama.
Regarding the distribution of remittances received by province, the Central Bank of the Dominican Republic (BCRD) indicated that the National District received 43.0% during August, followed by the provinces of Santiago and Santo Domingo, with 11.8% and 7.6%, respectively. This indicates that almost a third of remittances (62.4%) are received in the country's metropolitan areas.
“Analyzing the recent evolution of the external sector, the Central Bank of the Dominican Republic (BCRD) anticipates a favorable trend in foreign exchange inflows during 2024, generating more than US$42.6 billion. Tourism sector revenues stand out, exceeding US$10.5 billion, with remittances bringing in a similar amount. Likewise, year-end estimates project foreign direct investment (FDI) flows above US$4.5 billion and exports from free trade zones exceeding US$8.4 billion. These foreign exchange inflows contribute to maintaining the current relative exchange rate stability, such that as of the end of August 2024, the national currency had depreciated by 2.8% compared to the end of 2023.”
The Central Bank reaffirms its commitment to monitoring the current economic environment and continuing to take the necessary measures to counteract the impact of the challenging international landscape on the Dominican economy, in order to guarantee price and exchange rate stability.
