Remittance flows reached US$5,019.9 million in the first half of 2023

The Central Bank (BCRD) reported that during the first six months of this year 2023, the remittances received reached the figure of US$5,019.9 million, which represents a growth of 3.3% compared to the same period of the previous year and indicates that this The increase is in line with the projection of exceeding 10,000 million by the end of 2023.

It indicates that June registered a value of remittances of US$846.4 million, with an increase of 5.3%, compared to June 2022 and that these flows mark the sixth month with a consecutive increase so far this year, extending the behavior observed since the beginning of the year. last quarter of 2022.

The BCRD explains that the economic performance of the United States was one of the main factors that influenced the behavior of remittances, since 83.8% of the formal flows in June came from that country, some US$639.5 million. General unemployment in the North American country went from 3.7% in May to 3.6% in June.

Source: Central Bank.

Source: Central Bank.External source

Additionally, the non-manufacturing Purchasing Managers’ Index (PMI) of the Supply and Management Institute (ISM) registered a value of 53.9 in June, indicating a sustained expansion of the service sector, where most of the work is done. of the Dominican diaspora.

The BCRD also highlights the receipt of remittances through formal channels from other countries in June, such as Spain, for a value of US$47.8 million, 6.3% of the total, this being the second country in terms of total residents of the Dominican diaspora in abroad is concerned, as well as Haiti and Italy, with 0.9% and 0.8% of the flows received, respectively.

The rest of the receipt of remittances is divided between countries such as Switzerland, Canada and Panama, among others.

Regarding the distribution of remittances received by provinces during June, the BCRD indicates that the National District obtained the highest proportion, 36.2%, followed by the provinces of Santiago and Santo Domingo, with 13.7% and 8.8%, respectively. This indicates that more than half (58.7%) of the remittances are received in the metropolitan areas of the country.

external sector

Regarding the recent evolution of the external sector, the perspectives of the BCRD contemplate that during 2023 important flows of remittances, exports, income from tourism and direct foreign investment will continue.

It adds that these foreign currency inflows will continue to affect the relative stability of the exchange rate that is currently observed, in such a way that at the end of June the national currency appreciated by 1.5% compared to the end of 2022.

The greater flows of foreign income also allowed the accumulation of international reserves, which at the end of June exceeded US$16.2 billion. “This level reached represented 13.2% of GDP and about 6.0 months of imports, above the thresholds recommended by international organizations,” he explained in a statement.

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