SANTO DOMINGO – The Central Bank of the Dominican Republic (BCRD) reported this Thursday that remittances received reached US$9.2122 billion during the period of January-November 2023, representing a 3.4% increase compared to the same period of the previous year. This increase is in line with the projection of a flow exceeding US$10 billion by the end of 2023, the institution stated.
The press release states that, specifically during the month of November, remittances reached US$788.0 million, an increase of 0.1% compared to November 2022. "It is important to highlight that these flows mark the eleventh consecutive month of increase during the year.".
The Central Bank of the Dominican Republic (BCRD) explains that the economic performance of the United States was one of the main factors influencing remittance flows, as 84.5% of formal flows in November, totaling US$609.9 million, originated from that country. On the one hand, overall unemployment in the United States stood at 3.7% in November, remaining at pre-pandemic levels, while unemployment among Latinos was 4.6% in November, a decrease from 4.8% in October. Additionally, the Institute for Supply Management's (ISM) non-manufacturing Purchasing Managers' Index (PMI) registered a value of 52.7 in November, demonstrating the continued expansion of the services sector, where the majority of the Dominican diaspora is employed.
The Central Bank of the Dominican Republic (BCRD) also highlights the receipt of remittances through formal channels from other countries in November, such as Spain, which received US$41.8 million, representing 5.8% of the total. Spain is the second largest recipient of remittances from the Dominican diaspora abroad. Haiti and Italy followed, receiving 1.3% and 0.8% of the total flows, respectively. The remaining remittances were distributed among countries such as Switzerland, Canada, and Panama, among others.
Regarding the distribution of remittances received by province, the Central Bank of the Dominican Republic (BCRD) indicates that the National District received 36.0% during November, followed by the provinces of Santiago and Santo Domingo, with 13.2% and 9.4%, respectively. This indicates that more than half (58.6%) of remittances are received in the country's metropolitan areas.
After analyzing recent trends in the external sector, the Central Bank of the Dominican Republic (BCRD) anticipates continued significant flows of remittances, exports, tourism revenue, and foreign direct investment (FDI) throughout the remainder of 2023. Indeed, the institution's preliminary estimates for the end of this year indicate that tourism revenue will exceed US$10 billion, as will remittances, and that FDI inflows will reach approximately US$4.3 billion. These foreign exchange inflows contribute to the current relative stability of the exchange rate, such that at the end of November, the national currency depreciated by 1.3% compared to the end of 2022.
The institution emphasizes that the increased external inflows have allowed for the maintenance of an adequate level of international reserves, which reached US$15.0507 billion at the end of November. This level represents 12.5% of GDP and approximately 5.6 months of imports, exceeding the thresholds recommended by the IMF.
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.
