SANTO DOMINGO.-The Central Bank (BCRD) reported that during the first six months of 2023, remittances received reached US$5,019.9 million, representing a 3.3% increase compared to the same period of the previous year. The bank indicated that this increase is in line with the projection of exceeding US$10 billion by the end of 2023.
It indicates that June registered a remittance value of US$846.4 million, with an increase of 5.3%, compared to June 2022, and that these flows mark the sixth consecutive month of increase so far this year, extending the behavior observed since the beginning of the last quarter of 2022.
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 83.8% of formal remittance flows in June, totaling US$639.5 million, originated from that country. Overall unemployment in the United States fell from 3.7% in May to 3.6% in June.
Additionally, the Institute for Supply Management's (ISM) non-manufacturing Purchasing Managers' Index (PMI) registered a value of 53.9 in June, indicating a sustained expansion of the services sector, where most 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 June, such as Spain, for a value of US$47.8 million, 6.3% of the total, making it the second country in terms of total residents of the Dominican diaspora abroad, as well as Haiti and Italy, with 0.9% and 0.8% of the flows received, respectively.
The remainder of remittances are divided among countries such as Switzerland, Canada, and Panama, among others.
Regarding the distribution of remittances received by province during June, the Central Bank of the Dominican Republic (BCRD) indicates that the National District received the largest share, 36.2%, followed by the provinces of Santiago and Santo Domingo, with 13.7% and 8.8%, respectively. This indicates that more than half (58.7%) of remittances are received in the country's metropolitan areas.
External sector
Regarding the recent evolution of the external sector, the BCRD's outlook anticipates that significant flows of remittances, exports, tourism revenues, and foreign direct investment will continue during 2023.
He adds that these foreign exchange inflows will continue to affect the relative stability of the exchange rate currently observed, such that at the end of June the national currency appreciated by 1.5% compared to the end of 2022.
The increased flow of external income also allowed for the accumulation of international reserves, which exceeded US$16.2 billion at the end of June. “This level reached represented 13.2% of GDP and about 6.0 months of imports, above the thresholds recommended by international organizations,” the statement explained.
