Lots of other currencies are losing ground against the dollar; why is the Dominican Peso gaining ground against the dollar?
I am not sure you can say it is gaining ground as much as you can say it gained ground.
Remittances in dollars were extradordinary. November/December saw excellent tourist numbers. Price of gold moved up nicely. All of those contributed to its International Reserves. Ditto all of its bond borrowings in dollars.
However, the headwinds are obvious and approaching, such that the President has taken the extraordinary step to warn the country that tougher times are in front of the DR.
Externally, those headwinds include worldwide inflation, the war in Ukraine etc.
Internally, the DR has been raising salaries of workers across the board and has been subsidizing both the family basket and oil imports, all of these are inflationary or lead to inflation.
Tourism has dialed back, and while good, has slipped below pre-pandemic levels.
I see no reasons the peso can gain (strengthen) against the dollar, but a myriad as to why it may begin to slip (weaken).
Hopefully, the decline, if it comes, is orderly. What has happened to the Euro and Yen recently was a quick and sharp decline in their value vis a vis the dollar, and while they can to a large extent absorb it without to much pain.................the DR does not have that luxury.
Respectfully,
Playacaribe2