In October 2023, remittances received totaled US$827.1 million, a 1.4% increase compared to October 2022. It is projected that they will exceed US$10 billion by the end of 2023
SANTO DOMINGO – The Central Bank of the Dominican Republic (BCRD) reported that remittances received reached US$8,424.2 million during the period of January to October 2023, representing a 3.7% increase compared to the same period of the previous year. This increase is in line with the projection of exceeding US$10 billion by the end of 2023.
Specifically, remittances in October totaled US$827.1 million, a 1.4% increase compared to October 2022. It is important to note that these flows mark the tenth consecutive month of growth this year.
The BCRD explained that the economic performance of the United States was one of the main factors influencing remittance activity, as 85.2% of the formal flows in October, totaling US$641.3 million, originated from that country. On the one hand, the overall unemployment rate in the North American country stood at 3.9%, remaining at levels observed before the pandemic.
He detailed that additionally, the non-manufacturing Purchasing Managers' Index (PMI) of the Institute for Supply Management (ISM) registered a value of 51.8 in October, demonstrating the sustained expansion of the services sector, where most 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 October, such as Spain, which received US$41.6 million, representing 5.5% of the total. Spain is the second largest recipient of remittances from the Dominican diaspora abroad. Haiti and Italy followed, accounting for 0.9% and 0.8% of the total flows received, respectively. The remaining remittances were distributed among countries such as Switzerland, Canada, and Panama, among others.
Distribution
Regarding the distribution of remittances received by province, the Central Bank of the Dominican Republic (BCRD) indicates that the National District received 35.4% during October, followed by the provinces of Santiago and Santo Domingo, with 13.5% and 9.7%, respectively. This indicates that more than half (58.6%) of remittances are received in the country's metropolitan areas.
Regarding the distribution of remittances received by province, the Central Bank of the Dominican Republic (BCRD) indicates that the National District received 35.4% during September, followed by the provinces of Santiago and Santo Domingo, with 13.7% and 9.9%, respectively. This indicates that more than half (59.0%) of remittances are received in the country's metropolitan areas.
After analyzing recent trends in the external sector, the Central Bank of the Dominican Republic (BCRD) anticipates continued significant flows of remittances, exports, tourism revenue, and foreign direct investment (FDI) throughout the remainder of 2023. Indeed, the institution's preliminary estimates for the end of this year indicate that tourism revenue will exceed US$10 billion, as will remittances, and that FDI inflows will reach approximately US$4.3 billion. These foreign exchange inflows contribute to the current relative stability of the exchange rate, such that at the end of October, the national currency depreciated by 0.9% compared to the end of 2022.
The institution highlights that increased external income has allowed it to maintain an adequate level of international reserves, which reached US$15,340.0 million at the end of October. This level represents 12.8% of GDP and approximately 5.7 months of imports, exceeding the thresholds recommended by the IMF.
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.
