The Central Bank of the Dominican Republic (BCRD) described the behavior of the exchange rate in the country since the pandemic, stating that this corresponds to the combination of solid macroeconomic fundamentals, a credible monetary regime, relatively favorable external conditions and a robust institutional framework.
Through an analysis on its Open Page about the evolution of the exchange marketits determinants and perspectives, the monetary institution assured that these elements have allowed it to absorb significant shocks without major effects on the price stability.
However, he pointed out that from now on the exchange rate resilience of the country will depend on maintaining the credibility of the goals regime inflationstrengthening the supervision of exchange rate risks in the financial system and the continuity of capital flows stable—particularly remittances and foreign direct investment.
“This would contribute to the maintenance of the price stability in an environment of sustainable growth“states the article, written by Elisa Vilorio of Painter and Julio Andujar Schekerboth employees of the BCRD Government Advisory Office.
Offer of foreign exchange
In this regard, the bank highlighted that the currency supply has remained high in the post-pandemic period, highlighting that this year remittances reached historical highs, registering 10,780 million dollars to November, while the tourism income and foreign direct investment exceeded 8,500 million and 4,000 million dollarsrespectively, between January and September.
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The flow of foreign currency to the country is expected to be around $46 billion at the end of the year. In this context of increasing supply of the US currency, the nominal exchange rate has depreciated 3.6% so far this year, below the depreciation observed in 2024, which was 4.4%.
“In short, the monetary policy of the Central Bank will continue focused on preserving the price stabilitystrengthen the macroeconomic stability and guarantee a transparent exchange marketdeep and aligned with the best international practices, thus ensuring an environment conducive to sustained growth and financial stability,” the article concludes.
