The Central Bank maintains that the National District obtained the largest proportion, 33.6%, followed by the provinces of Santiago and Santo Domingo, with 14.3% and 9.0%, respectively, which indicates that more than half (56.9%) of the remittances are received in the metropolitan areas of the country.
SANTO DOMINGO– 53.8% of remittances received in the country go to men, while the figure for women is 46.2%, according to a report from the Central Bank of the Dominican Republic (BCRD) for January and February of this year.
The organization maintains that the conditions of the United States labor market constitute one of the main factors that continues to influence the behavior of remittances, since 84.5% of the flows in February came from that country.
It placed the amount received in that period at US$1,508.1 million, US$45.7 million less than the figure for those months last year.
According to figures presented by the BCRD, remittances decreased by 2.9% compared to the amount received in the first two months of 2021.
Last February, remittances totaled US$748.8 million, 1.6% less than in the same month of 2021, and fell 4.2% in January. However, the regulatory body believes this result confirms that remittance flows are adjusting to a new, higher level compared to the pre-pandemic average.
The report indicates that the US unemployment rate fell slightly last month to 3.8%, down from 4.0% in January 2022. It specifies that unemployment among Hispanics in the US fell from 4.9% in January to 4.4% in February.
The Central Bank of the Dominican Republic (BCRD) also highlights the receipt of remittances from other countries, such as Spain, which represent 6.5%. It notes that Spain is home to more than 186,000 Dominicans from the diaspora in Europe, according to a study by the Institute of Dominicans Abroad (INDEX).
Other countries that receive significant remittances include Haiti and Italy, with 1.2% and 0.9% of total remittances received, respectively. The remaining remittances are distributed among countries such as Switzerland, Canada, and Panama, among others.
Provinces
Regarding the distribution of remittances received by province, the Central Bank of the Dominican Republic (BCRD) indicates that the National District received the largest share, 33.6%, followed by the provinces of Santiago and Santo Domingo, with 14.3% and 9.0%, respectively. This indicates that more than half (56.9%) of remittances are received in the country's metropolitan areas.
The Central Bank of the Dominican Republic (BCRD) confirms that this year it expects to maintain a significant flow of remittances, recover tourism close to pre-pandemic levels, sustain export growth, and significant increases in foreign direct investment projects, mainly in the tourism sector.
Projections
The agency indicates that these events will contribute to a greater flow of foreign currency into the country and will help maintain the relative stability of the exchange rate currently observed, such that at the close of February 2022 the exchange rate showed an appreciation of 5.3% year-on-year.
It highlights that all of this, together with the country's strong macroeconomic fundamentals, would favor the accommodation of possible adverse shocks arising from the military conflict between Russia and Ukraine.
The institution highlights that this increased flow of foreign currency has allowed for the accumulation of international reserves, which reached a record high of US$14,849.9 million by the end of February 2022, representing 14.8% of GDP and equivalent to 7.2 months of imports. These metrics exceed the levels recommended by the IMF, contributing to the Dominican Republic maintaining a favorable external position.
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.
