The Dominican peso hit a new historic low against the US dollar on Friday, 5 September 2025, closing at an unprecedented RD$64.05 to the US dollar. The Central Bank′s reference exchange rate saw the selling price of the dollar climb. The buying price settled at RD$63.36.
This marks a significant depreciation, with the peso losing approximately 4.6% of its value in just over a month. On 1 August 2025, the buying rate was RD$60.58 and the selling rate was RD$61.26.
Listin Diario reports that the Central Bank of the Dominican Republic (BCRD) is set to tackle the rising value of the US dollar. This week, the bank will present a package of measures to the Monetary Board aimed at curbing the currency’s appreciation.
Officials at the Central Bank believe the dollar’s recent gains are only temporary. The institution has stated that the current exchange rate is still within its monetary targets and that the Dominican Republic is not facing any underlying structural issues with its currency.
Economists attribute the rapid devaluation to a combination of factors, including restrictive monetary policies and high interest rates in the United States, as well as rising domestic demand for dollars. In an interview with Hoy, Angelo Viro, president of the National Association of Businesses and Industries of Herrera (ANEIH), and former minister of Economy and Harvard professor Juan Ariel Jiménez, both agree on these causes.
Viro expressed deep concern from the business sector, stating that the rate has surpassed initial expectations. The currency’s breach of the RD$64 barrier, with some banks seeing rates as high as RD$64.35 and RD$64.40, has created what he calls a “situation out of control.” He emphasized that this volatility generates significant uncertainty and requires immediate attention to prevent further economic repercussions.
In addition to external factors, Viro highlighted domestic issues, including market speculation and the hoarding of dollars as a “safe haven” for value. Both Viro and Jiménez noted that an abundance of liquidity—or the availability of money in the market—is fueling the demand for dollars, further pushing up their price.
The devaluation has a direct and severe impact on businesses that rely on imported raw materials. As the cost of these imports rises, companies are forced to pass those expenses on to consumers through higher prices, which in turn diminishes consumer purchasing power and affects domestic demand.
Viro has called for the Central Bank to intervene and stabilize the exchange rate. He proposed that the Central Bank release dollars into the market at a capped price, perhaps around RD$63.50, to meet demand and reduce upward pressure. He believes this, combined with regulations on dollar sales, could help calm the market and prevent uncontrolled price increases.
The Ministry of Finance and Economy, in its “Macroeconomic Outlook 2025-2028” report, stated that the accelerated depreciation in the first half of the year is due to “seasonal effects for inventory replacement” and the “high uncertainty” in the international environment, which continues to cause significant volatility in financial markets.
Read more in Spanish:
Hoy
Listin Diario
El Dia
8 September 2025