The Central Bank reports that remittances are up for a second consecutive month. In June, Dominicans abroad sent home US$737.9 million, a 25.7% increase over the amount for June 2019. Most of the remittances are sent by Dominicans that reside in areas that have been hard hit by the Covid-19 virus.
The Central Bank of the Dominican Republic (BCRD) reports that remittances for the first half of the year are at a record US$3.47 billion, a 0.5% increase over the same period in 2019.
The remittances are compensating for a fall to US$395 million in April during the first peak of the Covid-19.
The Central Bank is bullish on the Dominican economy. If the remittances’ behavior is so, the rebound of the economy, and its free zone, tourism and remittance sectors that generate hard currency, may be around the corner. The BCRD indicates that the performance of the US economy is of vital importance for this country due to the close commercial and social ties. Currently, with respect to the United States, the Dominican Republic maintains a trade volume of 43.7% and exports some US$5.3 billion annually, equivalent to almost 48% of total exports of goods, according to official statistics at the end of 2019.
According to the latest figures, at the end of June more than 600 companies were already operating in the export free zones, about 86% of total companies, as the Dominican economy advances in the de-escalation phases.
The BCRD concludes that everything seems to indicate that, if the health issues do not worsen, the country would resume the path of economic growth that it had before Covid-19.
The Central Bank reiterates that it remains alert to continue taking the necessary measures to guarantee price and exchange market stability during the process of reactivation of the Dominican economy.
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Central Bank
15 July 2020