February recorded a remittance value of approximately US$917.0 million, an increase of 9.7%, compared to February 2024.
SANTO DOMINGO – Foreign currency inflows will continue to support the current relative stability of the exchange rate, the Central Bank of the Dominican Republic said yesterday, noting that during the first two months of 2025 there has been a cumulative depreciation of 1.9%, driven by seasonal demand for foreign currency from companies importing goods to replenish inventories and pay suppliers, as well as by precautionary demand from economic agents in the face of greater uncertainty in global markets.
The agency said that despite this, at the end of February the year-on-year depreciation of the Dominican peso was less than that of countries such as Argentina, Mexico, Brazil, Uruguay and Paraguay.
The Central Bank of the Dominican Republic (BCRD) reported that remittances received in the first two months of 2025 reached US$1,852.6 million, representing an 8.3% increase compared to the same period of the previous year. Specifically, February saw remittances totaling approximately US$917.0 million, a 9.7% increase compared to February 2024.
He explained that, despite the uncertainty surrounding the U.S. economy, one of the main factors influencing remittance flows was the performance of several key U.S. economic indicators during February, as the United States accounted for 83.6% of formal remittance flows for the month, totaling approximately US$710 million. On the one hand, the overall unemployment rate in the U.S. stood at 4.1% in February, a slight decrease from the 4.0% recorded in January, remaining close to full employment levels.
He also highlighted the receipt of remittances through formal channels from other countries in February, such as Spain, which received US$53.5 million, representing 6.3% of the total. Spain is the second largest recipient of remittances from the Dominican diaspora abroad. Haiti, Italy, and Switzerland also received remittances, accounting for 1.1%, 1.0%, and 1.0% of the total flows received, respectively. Other countries receiving remittances include Canada and France.
"These higher flows of external income also contribute to maintaining an adequate level of international reserves, which reached US$14,904.6 million at the end of February, equivalent to 11.6% of the gross domestic product (GDP) and about 5.4 months of imports, above the thresholds recommended by the International Monetary Fund (IMF).".
The Central Bank of the Dominican Republic's (BCRD) most recent outlook for the Dominican Republic's external sector anticipates positive growth in foreign exchange earnings through 2025. Tourism revenues are projected to reach approximately US$11.4 billion, while remittances are expected to reach around US$10.9 billion. Total exports are estimated at approximately US$14.8 billion, and foreign direct investment (FDI) is expected to exceed US$4 billion for the fourth consecutive year, reaching approximately US$4.7 billion by year-end. These inflows, combined with other exported services, are projected to generate total foreign exchange earnings exceeding US$45.6 billion by the end of 2025.
“These foreign currency inflows would continue to support the current relative stability of the exchange rate, such that, during the first two months of 2025, a cumulative depreciation of 1.9% was recorded. This has been driven by the seasonal demand for foreign currency from companies importing goods to replenish inventories and pay suppliers, as well as by precautionary demand from economic agents in the face of increased uncertainty in global markets. However, at the end of February, the year-on-year depreciation of the Dominican peso was less than that of countries such as Argentina, Mexico, Brazil, Uruguay, and Paraguay,” the statement from the organization maintains.
He added that higher external income flows also contribute to maintaining an adequate level of international reserves, which reached US$14,904.6 million at the end of February, equivalent to 11.6% of gross domestic product (GDP) and about 5.4 months of imports, above the thresholds recommended by the International Monetary Fund (IMF).
The statement from the organization highlighted that remittances sent by the Dominican diaspora abroad are crucial for development, as they generate a multiplier effect on consumption, investment, and financing for the country's most vulnerable sectors.
Additionally, the Institute for Supply Management's (ISM) non-manufacturing Purchasing Managers' Index (PMI) registered a value of 53.5 in February, indicating the expansion of the North American services sector, where the majority of the Dominican diaspora is employed. Furthermore, these remittances demonstrate that, despite the complex situation faced by migrants in the United States, Dominicans have managed to continue sending money to their families back home.
Regarding the distribution of remittances received by province, the agency indicates that the National District received 44.6% during February, followed by the provinces of Santiago and Santo Domingo, with 11.5% and 7.2%, respectively. This reveals that nearly two-thirds (63.3%) of remittances are received in the country's metropolitan areas.
The Central Bank reaffirms its commitment to monitoring the current economic environment in order to continue taking the necessary measures to counteract the impact on the Dominican economy of the prevailing challenging international landscape, in order to guarantee price and exchange market stability.
