The Central Bank of the Dominican Republic reported that remittances registered a record figure of US$994.9 million in March.
With this result, money transfers from family members from abroad in the first quarter totaled US$2,548.7 million, a growth of 49.6% compared to the same period in 2020.
“The increasingly favorable economic conditions in the US, the country where 87.0% of the flows came from in March, continues to be the main factor that has influenced the behavior of remittances,” the Central Bank said in a statement.
The institution stressed that one of the most relevant aspects of the US economy refers to employment, whose figures indicate that 916,000 new jobs were created in March, with an unemployment rate of 6%. Similarly, he highlighted the impact of the financial assistance provided by the US government to its population, which benefited the Dominican diaspora. “With the approval in the United States of the ‘American Rescue Plan’ introduced by President Joe Biden, the Dominicans residing in the United States were even more benefited,” says the issuer.
He added that another important factor to understand the behavior of remittances is that between March and April 2021 in the US government taxes are reimbursed, which additionally affects the disposable income of Dominicans in that country.
The institution points out that the greater flow of remittances, the increase in exports from free zones, the recovery process that tourism is showing thanks to the actions that the Government is carrying out in this sector, plus the new foreign investment projects Directly announced by major companies in different sectors of the economy, they guarantee the flow of foreign currency to the country.
This, together with the participation of the Central Bank in the exchange market “has made it possible to maintain the relative stability of the exchange rate.” In March, the exchange rate appreciated 2.2% compared to December 2020.
Source:
Diario Libre