Remittance Flows To The Dominican Republic Grow 3.9% In 2023

• The Central Bank of the Dominican Republic (BCRD) has reported that for the first eight months of 2023, remittances received amounted to $6,769.9Mn, marking a 3.9% growth compared to the same period in the previous year. This growth aligns with the projection of exceeding $10Bn by the end of the year.
• Specifically, in August, remittances reached $860.6Mn, reflecting a 1.4% increase compared to August 2022. However, this figure is $28.8Mn less than what was received in July this year when remittances totalled $889.4Mn.
• The BCRD attributes the behaviour of remittances to the economic performance of the United States, as 84.0% of formal remittance flows in August, approximately $643.6Mn, originated from the United States. Factors contributing to this include a low general unemployment rate of 3.8% in the U.S., similar to levels observed before the pandemic.
• Additionally, the non-manufacturing purchasing managers index (PMI) of the Institute of Supply Management (ISM) registered a value of 54.5 in August, indicating the sustained expansion of the services sector, where a significant portion of the Dominican diaspora resides.
• Looking ahead, the BCRD anticipates continued significant flows of remittances, exports, tourism income, and foreign direct investment throughout 2023. These inflows will continue to influence the relative stability of the exchange rate, with international reserves reaching $15,833.5Mn at the end of August, representing 13.2% of GDP and about 5.9 months of imports, exceeding international organization recommendations.

(Source: Dominican Today)