SANTO DOMINGO – The Central Bank of the Dominican Republic (BCRD) reported that remittances received during March 2025 totaled US$1,110.3 million, a 20.0% increase compared to March 2024 and a 21.2% increase compared to February 2025, when US$917.0 million was received. The BCRD also highlighted that remittances received in the first quarter of the year reached US$2,962.8 million, reflecting a 12.4% increase compared to the same quarter of the previous year. These funds sent by the Dominican diaspora abroad are important for development, as they generate a multiplier effect on consumption, investment, and financing for the country's most vulnerable sectors.
It is worth noting that this is occurring within an international context of persistent uncertainty, fueled by geopolitical tensions such as the conflicts in Eastern Europe and the Middle East, as well as by recent US tariff policy announcements that have raised fears of a potential escalation in trade wars. These factors, along with volatility in international financial markets, have impacted global growth expectations, leading to shifts in capital flows and increased caution among households and businesses, particularly in countries with large migrant communities, such as the United States.
In the specific case of the United States, one of the main factors influencing remittance flows was the performance of several key economic indicators during March. The US economy accounted for 83.9% of the formal flows for the month analyzed, totaling approximately US$867 million. On the one hand, the overall unemployment rate stood at 4.2%, a slight decrease from the 4.1% recorded in February, remaining close to full employment levels. Additionally, it is important to consider that during this period, the Dominican diaspora receives a significant portion of the tax refunds issued by the Internal Revenue Service (IRS), which increases their capacity to send remittances. Furthermore, these flows demonstrate that, like other Latin American migrants, Dominicans are sending larger remittances in response to the current economic and immigration uncertainty in the United States.
Likewise, the non-manufacturing Purchasing Managers' Index (PMI) from the Institute for Supply Management (ISM) registered a value of 50.8, indicating moderate expansion in the North American services sector, where a significant portion 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 March, such as Spain, which received US$65.5 million, representing 6.3% of the total. Spain is the second largest recipient of remittances from the Dominican diaspora abroad. Other countries receiving remittances include Italy, Haiti, and Switzerland, with 1.1%, 1.0%, and 1.0% 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 43.3% during March, followed by the provinces of Santiago and Santo Domingo, with 11.7% and 7.6%, respectively. This reveals that nearly two-thirds (62.6%) of remittances are received in the country's metropolitan areas.
These foreign currency inflows have contributed to the current relative stability of the exchange rate. In this regard, it is important to note that, as of April 14, 2025, the weighted average selling exchange rate closed at RD$60.92, representing a 0.7% appreciation of the Dominican peso against the US dollar, while the weighted average buying rate closed at RD$60.22. The institution highlights that, as of April 15, transactions were recorded with an exchange rate below RD$60.00 per dollar.
These flows have also helped to maintain an adequate level of international reserves, which are above US$14.7 billion, equivalent to 11.7% of gross domestic product (GDP) and 5.3 months of imports, above the thresholds recommended by the IMF.
The Central Bank of the Dominican Republic's (BCRD) most recent outlook for the Dominican external sector anticipates continued positive growth in foreign exchange earnings through 2025. Tourism revenues are projected to reach approximately US$11.4 billion, while remittances are expected to exceed US$10.9 billion. Total exports are estimated at around US$14.8 billion, and foreign direct investment (FDI) is projected to surpass US$4 billion for the fourth consecutive year, reaching approximately US$4.7 billion by year-end. These inflows, combined with other exported services, are expected to generate total foreign exchange earnings exceeding US$45.6 billion by the end of 2025.
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.
