SANTO DOMINGO. – The Dominican Republic has ample opportunity to enhance the impact of remittances on its economic dynamics through digitalization initiatives and the formalization of money transfers, facilitating access to credit and other financial services.
This was stated by the director of the Migration, Remittances and Development program of the Inter-American Dialogue forum, Manuel Orozco, during a discussion held by the Association of Multiple Banks of the Dominican Republic (ABA), which was attended by the Minister of Foreign Affairs, Roberto Álvarez; the president of the Association of Banks, Rosanna Ruiz; presidents and senior executives of financial entities, representatives of the Central Bank and the Superintendency of Banks and the remittances sector.
In his keynote address entitled "Towards a Characterization of Remittances in the Dominican Republic: Trends, Challenges and Perspectives for the Future," Orozco stated that "the challenge is how to further enhance this impact, once cash transfers are formalized within the financial ecosystem so that they can benefit from credit and utilize digital transfer mechanisms, because that increases income availability by 15%. So the impact exists, but its potential is even greater.".
In presenting a study on the foreign currency that the Dominican diaspora sends to the country each year, the researcher added that this better use is viable because the flow of remittances is supported by a fairly strong financial network made up of banking and non-banking institutions, with reach throughout the country and the ability to pay in real time.
The representative of the Inter-American Dialogue added that these strengths can be expanded with financial education initiatives for beneficiaries, as well as with the inclusion of actors who are outside of digitalization or banking, such as corner stores and other businesses.
For his part, the Foreign Minister of the Republic, Roberto Álvarez, after considering the high impact of remittances on the economy and on the most vulnerable social groups, highlighted the importance of legality in more than 90% of the diaspora in the United States, the convenience of digital channels that promote greater banking at lower costs, and the commitment through consulates and embassies to be spokespeople for the promotion of initiatives that contribute to the robustness of this strategic pillar for the 2036 goal.
Meanwhile, the president of the ABA, Rosanna Ruiz, highlighted the contribution of linking the diaspora with the country through low-cost digital mechanisms, which would expand the possibilities of generating a culture of saving and investment in both senders and receivers, as well as access to financial products, thus contributing to the achievement of their goals, such as the acquisition of homes.
Multiplier effect of remittances
The impact of remittances on economic activities, the challenges for the financial system, as well as the prospects for the evolution of annual amounts were part of the discussion carried out by the Association of Banks, where it was highlighted that, according to reports from the Central Bank, the country received US$10,756 million in remittances in 2024, while in June 2025 US$5,826.7 million had already entered, for an increase of 7.9% compared to the first half of the previous year.
In that regard, Manuel Orozco explained that these resources represent the country's main source of foreign currency, practically on par with total exports, and directly impact people's lives and finances.
“Remittances have a direct impact on more than 1.5 million households in the Dominican Republic, a country with four million households,” stated the researcher, who has a background in political science and public administration. He added that these effects are reflected in the private consumption of individuals and households, as they represent a supplement to purchasing power, especially for low-income segments, and also influence productive and financial activities.
In addition to his leadership role in the Inter-American Dialogue, a hemispheric forum for analysis that promotes democratic governance, Manuel Orozco is a senior fellow at Harvard University's Center for International Development and a senior advisor to the International Fund for Agricultural Development.
