Gold exports and tourism growth have been key factors in the strength of the Dominican peso, which has benefited from an increase in foreign exchange inflows.
JP Morgan places the Dominican currency among the best performing in Latin America in 2026 and attributes its strength to tourism, remittances, exports and foreign investment
The Dominican peso is among the best-performing currencies in Latin America and other frontier markets during 2026, a strength that has led JPMorgan to recommend investors open themselves up to Dominican assets through sovereign bonds maturing in 2033.
In a report dated August 20, the financial institution indicates that the Dominican currency accumulates an appreciation of 7.6% during the year, despite the fact that the Dominican Republic maintains a high dependence on oil imports and has faced an international scenario marked by higher energy prices.
JPMorgan attributes the peso’s performance to a diversified structure for generating foreign exchange mainly based on exports, tourism, remittances and foreign direct investment flows.
Factors of Peso Strength
The assessment coincides with recent data from the Central Bank of the Dominican Republic (BCRD), which placed the accumulated appreciation of the currency at around 8% at the end of July 2026 and linked this behavior to the increase in foreign exchange inflows.
One of the indicators that JPMorgan highlights is the reduction of the current account deficit, which stood at 0.7% of gross domestic product (GDP) during the four quarters ended in March, its lowest level since 2017-2018.
The bank foresees the deficit closing 2026 at around 0.9% of GDP, favored by the stability of the trade balance and a steady high income from tourism and remittances.
Impact of tourism and remittances
Among the factors identified by JPMorgan is the performance of gold exports, whose value increased 23.5% year-on-year, according to the figures used in its analysis.
The official data available also shows a strong expansion of this sector. The Central Bank reported that, during the first half of 2026, gold exports reached US$1,591.9 million, an increase of US$648.8 million compared to the same period in 2025.
Tourism is also unpinning the foreign exchange market. The arrival of international visitors increased by around 10% during the first half of the year, while tourism revenues reached US$6,716 million, a year-on-year growth of 15.3%.
Added to this are remittances. Between January and July of this year, US$7,316.4 million entered the country, 6.4% more than during the same period in 2025.
Overall, foreign investment, remittances, tourism, exports of goods and other services generated more than US$26.5 billion in foreign exchange during the first half of the year alone, an additional US$2.8 billion compared to the same period last year.
This influx has made it possible to partially offset the impact of the increase in the oil bill.
Exchange rate flexibility and recommendations
JPMorgan is also paying attention to another change: greater exchange rate flexibility and less Central Bank intervention in the foreign exchange market.
The International Monetary Fund (IMF) had previously classified the de facto Dominican exchange rate regime as “crawl-like.” In its most recent assessment, it was considered “floating”, due to greater exchange rate flexibility and the fact that the Central Bank’s involvement has focused mainly on smoothing out excessive movements.
For JPMorgan, that transition can favor greater transparency in the formation of the coin’s price.
Given this scenario, the bank recommends investing in the Dominican peso through global sovereign bonds maturing in 2033, in a medium-term strategy proposal that incorporates the costs of the operation.
The recommendation is not without risks. JPMorgan warns that excessive appreciation of the peso could modify the conditions that make the position attractive, while changes in market liquidity could also affect the outcome of the strategy.
In essence, the U.S. bank’s stance assumes that the factors that have sustained the peso during 2026 – foreign exchange inflows, lower external deficit and greater exchange rate flexibility – will be persistent enough to keep the positioning of Dominican assets attractive.
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