The Central Bank of the Dominican Republic (BCRD) reported this Tuesday that between the months of January and February 2022, the remittances received reached a figure of US$1,508.1 million.
The BCRD highlights that this amount exceeds by US$430.4 million and US$325.0 million the remittances received in the first two months of 2020 and 2019, respectively, periods in which the aid schemes that were implemented after March 2020 and ending in September 2021.
In the month of February 2022, in particular, remittances totaled US$748.8 million, just 1.6% less than the same month in 2021. The entity points out that, however, said result confirms that remittance flows are adjusting to a new level, higher than the average prior to the pandemic.
The issuing entity explains that the conditions of the labor market in the United States (USA) is one of the main factors that continues to affect the behavior of remittances, since 84.5% of the flows in February came from that country. During the month of February, the US unemployment rate decreased slightly to 3.8%, from 4.0% in January 2022. Particularly, the unemployment of Hispanics in the US decreased from 4.9% in January to 4.4% in February .
The BCRD also highlights the reception of remittances from other countries, such as Spain, in the order of 6.5%, a country that is home to more than 186,000 Dominicans from the diaspora in Europe, according to a study by the Institute of Dominicans Abroad (INDEX ), as well as Haiti and Italy, with 1.2% and 0.9% of the flows received, respectively. The rest of the reception of remittances is divided among countries such as Switzerland, Canada and Panama, among others.
Regarding the distribution of remittances received by provinces, the BCRD the National District obtained the highest proportion, 33.6%, followed by Santiago and Santo Domingo, with 14.3% and 9.0%, respectively. It means that more than half (56.9%) of remittances are received in the metropolitan areas of the country.
Analyzing the flows of February 2022 according to the gender of the person receiving, men captured 53.8% and women 46.2% of the remittances received through formal channels. The BCRD confirms that for this year the maintenance of a significant flow of remittances, recovery of tourism close to pre-pandemic levels, sustained growth in exports, and significant increases in foreign investment projects are expected.
Accumulation of reserves thanks to the flow of foreign exchange
The institution highlights that this greater flow of foreign currency has allowed the accumulation of international reserves, which by the end of February 2022 reached the historical figure of US$14,849.9 million, representing 14.8% of GDP and equivalent to 7.2 months of imports. These metrics exceed the levels recommended by the IMF, helping the Dominican Republic maintain a favorable external position.
