Central Bank reports remittances reached US$1,566.3 million between January and February 2023

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Santo Domingo, D.R. The Central Bank of the Dominican Republic (BCRD) reports that between the first two months of 2023, remittances received reached a figure of US$1,566.3 million, exhibiting a 3.9% growth compared to the same period of the previous year.

Particularly, the month of February had a value of remittances of about US$764.3 million, with an increase of 2.1%, compared to February 2022. These flows in February of this year mark the fifth month with a consecutive increase, continuing the path of growth observed since the beginning of the last quarter of 2022.

It is important to highlight the multiplier effect on consumption, investment, and financing of the most vulnerable sectors with these resources provided by the diaspora.

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The Central Bank explains that the economic performance of the United States was one of the
main factors that influenced the behavior of remittances, since 84.9% of the dress flows in February came from that country, some US$558.5 million.

It should be noted that, during 2022, the economy grew by 2.1%, according to its Office of Economic Analysis, and unemployment in February 2023 stood at 3.6%, the lowest level in more than 50 years.

Additionally, the non-manufacturing Purchasing Managers’ Index (PMI) of the Institute for Supply and Management (ISM) gained a value of 55.1 in February, indicating the expansion of the services sector, where employees are employed. Most of the Dominican diaspora

The BCRD also highlights the receipt of remittances through formal channels from other countries in February, such as Spain, for a value of US$37.4 million, 5.7% of the total, this being the second country in terms of the total number of residents of the Dominican diaspora abroad is concerned, as well as Haiti and Italy, with 1.1% and 0.8% of the flows received, respectively. The rest of the receipt of remittances is divided between countries such as Switzerland, Canada, and Panama, among others.

Regarding the distribution of remittances received by provinces during February, the BCRD indicates that the National District obtained the highest proportion, 35.2%, followed by the areas of Santiago and Santo Domingo, with 14.3% and 8.6 %, respectively. This indicates that more than half (58.1%) of the remittances are received in the country’s metropolitan areas.

After analyzing the recent evolution of the external sector, the perspectives of the BCRD contemplate that during 2023 important flows of remittances, exports, income from tourism, and direct foreign investment will continue. These foreign currency inflows will continue to affect the relative stability of the exchange rate that is currently observed so that at the end of February, the national currency appreciated by 1.3% compared to the end of 2022.

The institution highlights that the greater flows of external income also allowed the
accumulation of international reserves at the end of February of around US$15.6 billion, representing 12.9% of GDP and some 5.9 months of imports, metrics exceeding the recommended levels by the IMF.

The Central Bank reaffirms its commitment to vigilance over the current economic environment to continue taking the necessary measures to counteract the impact on the Dominican economy of the challenging prevailing international scenario to guarantee price and exchange market stability.

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