{"id":12572,"date":"2026-08-30T15:29:19","date_gmt":"2026-08-30T15:29:19","guid":{"rendered":"https:\/\/dmklawyers.com\/?p=12572"},"modified":"2026-08-30T15:29:21","modified_gmt":"2026-08-30T15:29:21","slug":"jpmorgan-backs-dominican-peso-and-recommends-sovereign-bonds-due-in-2033","status":"publish","type":"post","link":"https:\/\/dmklawyers.com\/en\/jpmorgan-backs-dominican-peso-and-recommends-sovereign-bonds-due-in-2033\/","title":{"rendered":"JPMorgan backs Dominican peso and recommends sovereign bonds due in 2033"},"content":{"rendered":"\n
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.<\/p>\n\n\n\n
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<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
Factors of Peso Strength<\/strong><\/p>\n\n\n\n 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.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n Impact of tourism and remittances<\/strong><\/strong><\/p>\n\n\n\n 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.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n 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%.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n This influx has made it possible to partially offset the impact of the increase in the oil bill.<\/p>\n\n\n\n Exchange rate flexibility and recommendations<\/strong><\/p>\n\n\n\n JPMorgan is also paying attention to another change: greater exchange rate flexibility and less Central Bank intervention in the foreign exchange market.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n For JPMorgan, that transition can favor greater transparency in the formation of the coin’s<\/a> price.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n