Remittances exceeded US$6.5 billion between January and August 2022; 84% came from the US

Santo Domingo – The Central Bank of the Dominican Republic (BCRD) reported that, between the months of January and August 2022, the remittances received reached a figure of US$6,518.8 million.

Likewise, it highlights that this amount exceeds by US$1,792.8 million the remittances received in the first eight months of 2019, the period prior to the start of the COVID‑19 pandemic.

In the month of August 2022, remittances totaled US$849.2 million, higher than those received in the months of June and July

These figures reaffirm the establishment of the new level of monthly remittance flows around US$800.0 million.

In that sense, when comparing this amount for August 2022 with the average value in the same month for the period prior to the 2015-2019 pandemic, which was US$527.7 million, a significant increase is observed.

The Central Bank explains that the economic performance of the United States (USA) is one of the main factors that continues to affect the behavior of remittances, since 84.0% of the flows in August came from that country.

During said month, the non-manufacturing PMI of the Institute of Management and Supply (ISM, for its acronym in English) registered an increase going from 56.7 in July to 56.9 in August, thus evidencing the continuous expansion of the service sector of the North American economy, sector in which the Dominican diaspora in the US is generally employed.

The BCRD also highlights the receipt of remittances from other countries, such as Spain, in the order of 6.2%, second country in terms of total residents of the Dominican diaspora abroad, as well as Haiti and Italy with 1.3% and 0.8 % of flows received, respectively.

Regarding the distribution of remittances received by provinces, the BCRD indicates that the National District obtained the highest proportion, 34.1%, followed by the provinces of Santiago and Santo Domingo, with 14.3% and 9.0%, respectively.

Analyzing the flows of August 2022 according to the gender of the recipient, men predominate, with 52.9%. Women captured the remaining 47.1% of remittances received through formal channels.

After evaluating the recent evolution of the external sector, the BCRD estimates that during the rest of the year said sector will maintain a dynamic flow of remittances, tourism, exports and foreign direct investment.

This will contribute to a greater flow of foreign currency to the country and will help maintain the relative stability of the exchange rate that is currently observed, in such a way that the exchange rate showed an interannual appreciation of more than 7.0% at the end of August 2022. .

The institution highlights that this greater flow of foreign exchange has also allowed the accumulation of international reserves, which by the end of August 2022 were placed above US$14,000 million, representing around 12.5% ​​of GDP and equivalent to about 5.8 months of imports. These metrics exceed the levels recommended by the IMF, helping the Dominican Republic maintain a favorable external position.