SANTO DOMINGO - The Central Bank of the Dominican Republic (BCRD) reported this Monday that, during 2023, remittances received reached US$10,157.2 million, increasing 3.1% compared to the previous year, in line with the institution's projections.
Specifically, December saw remittances valued at US$945.0 million, a 0.1% increase compared to December 2022. It is important to note that throughout 2023, remittance flows showed year-on-year increases.
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 84.2% of the formal flows in December originated from that country, some US$681.7 million.
On the one hand, overall unemployment in the United States stood at 3.7% in December, remaining at pre-pandemic levels. However, unemployment among Latinos rose from 4.8% in November to 5.0% in December. Additionally, the Institute for Supply Management's (ISM) non-manufacturing Purchasing Managers' Index (PMI) registered a value of 50.6 in December, closing out 2023 and demonstrating the continued expansion of the service 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 December, such as Spain, which received US$48.0 million, representing 5.9% of the total. Spain is the second largest recipient country in terms of the total number of Dominican diaspora residents abroad. Haiti and Italy followed, receiving 1.3% and 0.8% of the total remittances, respectively. The remaining remittances were received from 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 36.1% in December, followed by the provinces of Santiago and Santo Domingo, with 13.2% and 9.0%, respectively. This shows that more than half (58.3%) 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) projects tourism revenues exceeding US$10 billion by the end of 2023, similar to remittances, and FDI inflows of approximately US$4.3 billion. These foreign exchange inflows contribute to the current relative stability of the exchange rate, such that the national currency depreciated by 3.2% by year-end compared to the end of 2022, below the average depreciation rate of the years prior to the pandemic.
The institution highlights that the increased flow of external income has also allowed it to maintain an adequate level of international reserves, which reached US$15,464.3 million at the end of December. This level represents 12.9% of GDP and approximately 5.8 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.
