Dominican Central Bank Will Keep Peso On Depreciatory Track

• The Dominican peso (DOP) will maintain its steady depreciation versus the US dollar as the Banco Central de la República Dominicana (BCRD) keeps a ‘managed float’ regime in place to support export competitiveness.
• While the Dominican economy will likely experience a modest slowdown in real GDP growth in the coming quarters, the economy will remain an attractive destination for foreign investment, which will drive capital inflows and bolster demand for Dominican assets
• Fitch Solutions maintain the forecast that the unit will average Ps51.3/USD in 2019, but have revised the 2020 average forecast to Ps53.6/USD, from Ps52.6/USD previously, as a stronger dollar will weigh on emerging market FX.

(Source: Fitch)