The Central Bank reported on 12 May 2025 that remittances continue to be a strong component of the influx of hard currency to the Dominican Republic. Remittances from Dominicans living abroad continued to strengthen between January and April 2025, reaching a total of US$3.92 billion. This represents a significant 12.1% increase compared to the same period in 2024.
Looking ahead, the BCRD forecasts continued growth in foreign exchange earnings for 2025, driven by tourism, remittances, exports, and FDI.
The Central Bank reports that remittances in April 2025 were US$954.6 million, marking an 11.0% jump from April 2024. These funds play a crucial role in the country’s development by stimulating consumption, investment, and support for vulnerable sectors.
Despite global economic uncertainty fueled by geopolitical tensions, trade conflicts, and volatile financial markets, Dominican remittances have shown resilience. The Central Bank attributes the continued high level of remittances to several factors:
• Strong US economy: The United States, which accounts for 82.7% of formal remittance flows in April, experienced a stable unemployment rate at 4.2%, near full employment levels. Additionally, tax refunds from the IRS continued to boost the sending capacity of Dominican diaspora members.
• Expanding service sector in the US: The Institute for Supply Management’s non-manufacturing PMI index indicated moderate growth in the US service sector for ten consecutive months, positively impacting remittances from Dominicans employed in this sector.
• Diverse sources: While the US is the primary source, Spain contributed another US$53.8 million in April (6.1% of the total), followed by Italy, Haiti, and Switzerland, where there are large populations of Dominican expats.
Geographically, the majority of remittances (58.5%) are received in the metropolitan areas of Santo Domingo, Santiago, and Santo Domingo province.
The BCRD highlighted that other key foreign exchange earners also performed well in the first quarter of 2025:
• Tourism: US$3.25 billion.
• Exports: US$3.44 billion.
• Foreign Direct Investment (FDI): US$1.36 billion.
These inflows have contributed to the Dominican Republic’s stable exchange rate and robust foreign reserves, exceeding US$15 billion as of 9 May 2025.
The Central Bank says it remains committed to monitoring global economic conditions and implementing measures to ensure price and exchange rate stability in the face of ongoing international challenges.
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Central Bank
13 May 2025