The Central Bank of the Dominican Republic (BCRD) reported that in August 2021 the remittances received reached US$872 million, surpassing US$102.2 million those registered in the same month last year.
The institution pointed out that, when compared with August 2019, the year before the pandemic, remittances in August 2021 showed a growth of 38.8%, US$243.6 million more.
Cumulatively, between January and August of this year, remittances reached
US$7,031.5 million, US$1,959.1 million higher than the same period of 2020, registering a 38.6% year-on-year growth.
The bank explained that the continuous improvement in economic conditions in the United States (USA) is one of the main factors that continue to affect the behavior of remittances since 84.5% of the flows of remittances came from that country. July, where more than two million people of Dominican origin reside, according to the Census Bureau of that nation.
Specifically, it is observed how employment has been recovering in that country, especially after the creation of 235 thousand new jobs, which resulted in an unemployment rate of 5.2%, a decrease of 0.2% compared to 5.4% in July. . In particular, unemployment among Hispanics in the US rose to 6.4% in August from 6.6% last month.
The institution indicated that, in addition to the US, in August the reception of remittances from Spain stands out in the order of 7.1%, a European country with the highest number of Dominican migrants. Haiti and Italy follow with 1.0% and 0.9%, respectively. The rest of the receipt of remittances is distributed among countries such as Switzerland, Canada, and Panama, among others.
Regarding the distribution of remittances received by provinces, the BCRD details that the National District obtained the highest proportion, 33.8%, followed by the Santiago and Santo Domingo provinces, with 14.4% and 8.4%, respectively. This indicates that more than half (56.6%) of remittances are received in metropolitan areas of the country.
Remittance flows are also relevant for financial inclusion. Although the remittance companies received 81.1% of the flows in August 2021, the financial intermediation entities channeled 18.9% of the remittances received through formal channels, exceeding the 16.5% observed in the same month of 2020. This suggests a greater approach from economic agents to the services offered by banks.
This greater flow of foreign currency has allowed the accumulation of international reserves, which exceed US$13 billion at the end of August, 14.3% of GDP and equivalent to 7.5 months of imports. These metrics exceed the levels recommended by the IMF, helping the Dominican Republic maintain a favorable external position with prospects of obtaining a lower current account deficit in 2021, around 1.5% of GDP.
Source:
Diario Libre
