The Central Bank anticipates a favorable evolution of foreign exchange earnings during 2025.
SANTO DOMINGO. -The Central Bank of the Dominican Republic (BCRD) reported that, between January and May 2025, remittances received reached US$4,903.0 million, increasing 11.9% compared to the same period of the previous year.
The agency noted that remittances in May totaled US$985.5 million, an 11.1% increase compared to the same month in 2024. These funds 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.
"It is important to point out that this positive performance of remittances occurs within an international context of high uncertainty and volatility in international financial markets, where global growth expectations have been affected, leading to shifts in capital flows and greater caution among households and businesses, particularly in countries hosting migrant communities," the Central Bank statement said.
He explains that in the specific case of the United States, one of the main factors influencing remittance behavior was the performance of several key economic indicators during May. The US economy accounted for 83.1% of the formal flows for the month analyzed, totaling approximately US$759.2 million. On the one hand, the overall unemployment rate remained at 4.2%, unchanged from April and close to full employment levels.
Similarly, the Institute for Supply Management's (ISM) non-manufacturing Purchasing Managers' Index (PMI) registered a value of 49.9 in May, slightly below the 51.6 recorded in April 2015.
The Central Bank of the Dominican Republic (BCRD) also highlights the receipt of remittances through formal channels from other countries in May, such as Spain, which received US$54.1 million, representing 5.9% of the total. Spain is the second largest recipient of remittances from the Dominican diaspora abroad. Haiti accounted for 1.4% of remittances, while Italy and Switzerland each contributed 1.1%. 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 37.1% in May, followed by the provinces of Santiago and Santo Domingo, with 13.2% and 8.0%, respectively. This reveals that more than half (58.3%) of remittances are received in the country's metropolitan areas.
Analyzing recent external sector performance, the Central Bank of the Dominican Republic (BCRD) anticipates favorable growth in foreign exchange earnings during 2025, with tourism, foreign direct investment (FDI), and exports, along with remittances, being the most significant contributors. Remittances and FDI flows are projected to reach approximately US$11.3 billion and US$4.7 billion, respectively, by the end of the year.
These foreign exchange inflows contribute to the relative stability of the exchange rate currently observed, such that at the end of May 2025 the national currency appreciated by 3.4% compared to the end of 2024. These higher external flows have also allowed for maintaining an adequate level of international reserves, which reached US$14,643.6 million at the end of May, representing 11.6% of the gross domestic product (GDP) and covering about 5.4 months of imports, above the thresholds recommended by the International Monetary Fund (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.
