SANTO DOMINGO – The Central Bank of the Dominican Republic (BCRD) reported that remittances received in January 2025 reached US$935.6 million, a 7.0% year-on-year increase. These funds sent by the Dominican diaspora abroad play a fundamental role, generating a multiplier effect on consumption, investment, and financing for the country's most vulnerable sectors.
The Central Bank of the Dominican Republic (BCRD) explains that the economic performance of the United States was one of the main factors that influenced the behavior of remittances, since 81.7% of the formal flows in January originated from that country, some US$669.3 million.
On the one hand, the overall unemployment rate in the United States stood at 4.0% in January, a slight decrease from the 4.1% recorded in December 2024, remaining at full employment levels. Additionally, the Institute for Supply Management's (ISM) non-manufacturing Purchasing Managers' Index (PMI) registered a value of 52.8 in January, indicating that the U.S. services sector, where most of the Dominican diaspora is employed, began the year with expansion.
The Central Bank of the Dominican Republic (BCRD) also highlights the receipt of remittances through formal channels from other countries in January, such as Spain, which received US$55.3 million, representing 6.8% of the total. Spain is the second largest recipient of remittances from the Dominican diaspora abroad. Haiti, Italy, and Switzerland followed, accounting for 1.6%, 1.2%, and 1.1% of the total flows received, respectively. Other countries receiving remittances include Canada and France.
Regarding the distribution of remittances received by province, the Central Bank of the Dominican Republic (BCRD) indicates that the National District received 43.7% during January, followed by the provinces of Santiago and Santo Domingo, with 11.6% and 7.6%, respectively. This reveals that nearly two-thirds (62.9%) of remittances are received in the country's metropolitan areas.
The Central Bank of the Dominican Republic (BCRD) projects a favorable evolution of foreign exchange inflows during 2025, highlighting remittances, tourism revenues, foreign direct investment (FDI), and exports. Remittances and FDI flows are estimated to reach approximately US$11 billion and US$4.7 billion, respectively, by year-end. These foreign exchange inflows are expected to continue supporting the current relative stability of the exchange rate. As of the end of January 2025, the Dominican currency had depreciated by 4.8% year-on-year, a rate lower than that of countries such as Mexico, Brazil, Uruguay, Paraguay, Colombia, and Chile.
The institution highlights that the higher flows of external income have also allowed for maintaining an adequate level of international reserves, which reached US$12,613.4 million at the end of January, about 4.6 months of imports, above 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.
