Taken from Diario Libre
SANTO DOMINGO – The Central Bank of the Dominican Republic remittances in December 2021 remittances received in December 2019, the year before the pandemic , by US$284.1 million, or 43.3%.
According to the statement, total inflows this year reached US$10,402.5 million, some US$2,183.2 million more than the same period in 2020, registering a 26.6% year-on-year growth, the highest level ever reached.
United States ' economic conditions is one of the main factors influencing remittance , as 83.2% of December's flows originated from that country. The recovery of the US economy is reflected in employment there, especially after the creation of 199,000 new jobs in the last month of the year. Consequently, the unemployment rate fell 0.3% compared to November, reaching 3.9% at the end of December. Specifically, unemployment among Hispanics in the US decreased from 5.2% in November to 4.9% in December.
remittances stand out at 7.2%, a country that hosts the largest portion of the Dominican diaspora in Europe . Other significant countries of origin for remittances are Haiti and Italy, with 1.4% and 1.0% of the flows received, respectively. The remaining remittances are distributed among 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) indicated that the National District received the largest share, 33.7%, followed by the provinces of Santiago and Santo Domingo, with 14.1% and 8.9%, respectively. This indicates that more than half (56.8%) of remittances are received in the country's metropolitan areas.
Analyzing the flows of December 2021 according to the gender of the person receiving, men captured 51.3% and women 48.7% of the remittances received through formal channels.
The Central Bank of the Dominican Republic (BCRD) confirmed that the outlook for the Dominican Republic's external sector remains positive for the end of the year. In addition to the dynamism of remittances , the faster-than-expected recovery of tourism, the exceptional performance of exports, and the significant influx of foreign direct investment have contributed to a greater flow of foreign currency into the country. This has allowed for the relative stability of the exchange rate, such that at the close of 2021 the exchange rate appreciated by 1.4% compared to December 2020.
The institution highlights that this increased flow of foreign currency allowed for the accumulation of international reserves, exceeding US$13 billion by the end of 2021, representing 14.0% of GDP and equivalent to 6.6 months of imports. These metrics surpass the levels recommended by the IMF, contributing to the Dominican Republic maintaining a favorable external position with a current account deficit in 2021 estimated at around 2.0% of GDP.
The Central Bank reiterates that it remains vigilant and will continue to take the necessary measures to guarantee price and exchange market stability during the consolidation process of the reactivation of the Dominican economy.
