Dominican economy continues strong in June 2022

[Dolores]

The Central Bank reports that the Monthly Economic Activity Indicator (IMAE) registered a remarkable inter-annual expansion of 5.8% in the month of June, higher than the 4.8% observed in May and the 4.7% of April 2022. The average growth of the IMAE for January-June 2022 stood at 5.6% compared to the same semester of the previous year.

The Dominican economy continues to benefit from an increase in foreign direct investment that reached US$1.87 billion from January to June 2022, for an 8% expansion over the same period in 2021.

Tourism arrivals and receipts reached a record US$4.12 billion, with outlook for US$8.4 billion in receipts by year’s end.

Remittances were US$4.86 billion for the first half of the year, up 7.6% on a 12-month period, and a 40.6% increase when compared to the pre-pandemic 2019. By year’s end, remittances are expected to reach US$10 billion. In June...

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[Yourmaninvegas]

"The influx of hard currency has been such that the peso appreciated 4.8% at the end of June".

Tell me about it.
Glad I got my biggest deals done at 1 to 58.
Between inflation and the APPRECIATION of the peso
My accounts are getting beat like a unloved step child

Now let us review a few posts from the past...shall we?
Vamos a Caribbean Beach anyone?
How you like me now?
😂

 

[william webster]

The fall from 58 to 54 is not too severe..... a decline, Yes.... worth worrying about, No

 

[SKY]

The fall from 58 to 54 is not too severe..... a decline, Yes.... worth worrying about, No

Are ;you talking about the Peso to Dollar rate? If ;you are it is the opposite, the lower number means the you get less pesos per US dollar. So the peso is worth more as the number goes down.............

 

[Yourmaninvegas]

It is interesting to me that a 4.8% decline of the value of USD in one month is not a concern to some people posting up in here.
8% a year is considered a good investment return.
Now if you are only moving chump change around then a 4.8% decline in the value of the USD (in a month) is not a concern for ya.
I'm not moving around chump change 🤪

Are ;you talking about the Peso to Dollar rate? If ;you are it is the opposite, the lower number means the you get less pesos per US dollar. So the peso is worth more as the number goes down.............

You are dead on 🎯
It means you get 4 less DOP for every 1 USD that you exchange.
So if you need to pay 100 DOP for something it used to cost you 1.72 USD
Now it costs you: 1.85 DOP
That is a 14 cents more

If you are spending 100,000 DOP how much more mush you spend on that?
This is a exercise left for the reader...

For me the difference is enough two buy two of my favorite bottles of Bourbon here in 🇩🇴
And they will last me for way more than a month.
🥃🥃

 

[william webster]

Are you sure the math is right…. The decline ??

 

[SKY]

Are you sure the math is right…. The decline ??

I will make it simple. Let's say the peso is at 50 to the dollar. To buy $100 Dollars it costs you 5,000 pesos. Now let's Raise the rate as you suggest. Now the peso is at 100 to the Dollar. Now you need 10,000 pesos to get that $100 US. So the lower you go the more valuable the peso is. If you cannot see this well..................

 

[william webster]

4.8%.... is that right?

 

[Yourmaninvegas]

This is what it says in post #1:

"The influx of hard currency has been such that the peso appreciated 4.8% at the end of June".

"Las actividades generadoras de divisas favorecieron la estabilidad relativa del tipo de cambio, reflejada en una apreciación de la moneda local de 4.8 % al cierre de junio."

 

[El Hijo de Manolo]

I'm sorry, but whatever the good news, it is countered by the overwhelming % of laundered cash in the banks and on the street. The increase in hard currency is futile until the %laundered cash abates. The laundered cash in the banks and streets simply devalues the peso.

 

[Yourmaninvegas]

The only thing that devalues the DOP is the market or if DRGOV decides to print more money.
FACT!!

 

[El Hijo de Manolo]

The only thing that devalues the DOP is the market or if DRGOV decides to print more money.
FACT!!

Sorry, but you clearly do not understand the effect of laundered money on a currency. This is all the time i really have tonight. 🤪

 

[Yourmaninvegas]

I don't have the time tonight either.
But this issue is too important.
So, let us review some basics...

What is Money Laundering?
"Money laundering is the illegal process of making large amounts of money generated by criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source. The money from the criminal activity is considered dirty, and the process “launders” it to make it look clean."

What Is Money Laundering?

Money laundering allows large amounts of money generated by a criminal activity appear to have come from a legitimate source.

www.investopedia.com

Money Laundering has negative effects on an economy. But if that was true in the 🇩🇴 it should be showing up in the economic statistics. And it clearly is not. Please make reference to post #1

“Everyone is entitled to his own opinion, but not to his own facts.”​

― Daniel Patrick Moynihan

Those who proffer that money laundering is devaluing the currency of the Dominican Republic may present the facts to support the statement that it "simply devalues the peso".