SANTO DOMINGO.- The Central Bank of the Dominican Republic (BCRD) reported that, between January and November 2024, remittances received totaled US$9,752.5 million, representing an increase of US$540.3 million (5.9%) compared to the same period of the previous year.
The organization stated that in November alone, US$840.8 million was received for this purpose, representing a year-on-year increase of 6.7%. "It is crucial to highlight the importance of these resources sent by the Dominican diaspora abroad, as they generate a multiplier effect on consumption, investment, and financing for the country's most vulnerable sectors," the entity emphasized.
He explained that the economic performance of the United States was a determining factor in the behavior of remittances, since 83.1% of the formal flows in November, equivalent to US$652.1 million, came from that country.
"On the one hand, the overall unemployment rate in the United States stood at 4.2% in November, with the creation of 227,000 new jobs. Additionally, the non-manufacturing Purchasing Managers' Index (PMI) from the Institute for Supply Management (ISM) registered a value of 52.1 in November, down from 56.0 in October, indicating, however, the expansion of the services sector, where a large part of the Dominican diaspora is employed.".
The Central Bank of the Dominican Republic (BCRD) also highlighted the receipt of remittances through formal channels from other countries in November. In this regard, Spain contributed US$45.8 million, representing 5.8% of the total, making it the second country with the largest Dominican diaspora population abroad. Italy and Haiti contributed 1.3% and 1.1% of the remittance flows, respectively. Other countries, such as Switzerland, Canada, and Panama, were also identified as sources of remittances.
Regarding the distribution of remittances received by province, the Central Bank of the Dominican Republic (BCRD) indicates that the National District received 41.1% during November, followed by the provinces of Santiago and Santo Domingo, with 12.3% and 7.6%, respectively. This indicates that 61.0% of remittances are received in the country's metropolitan areas.
Analyzing the recent evolution of the external sector, the Central Bank of the Dominican Republic (BCRD) projects a significant inflow of foreign currency by the end of 2024, generating more than US$43 billion. Tourism revenues stand out, valued at around US$10.7 billion, along with a similar amount from remittances. Furthermore, year-end estimates anticipate FDI inflows exceeding US$4.5 billion and exports from free trade zones surpassing US$8.5 billion. These foreign exchange inflows contribute to maintaining the current relative exchange rate stability. As a result, by the end of November 2024, the national currency had depreciated by 3.7% compared to the end of 2023.
The institution highlights that the increased external inflows have also allowed for the maintenance of an adequate level of international reserves, which reached US$13,090.4 million by the end of November 2024. This amount covers approximately five months of imports and is equivalent to 10.5% of GDP, exceeding the thresholds recommended by the IMF.
The Central Bank reaffirms its commitment to monitoring the current economic environment and will continue taking the necessary measures to counteract the impact of the challenging international landscape on the Dominican economy, thereby ensuring price and exchange rate stability.
