Exchange Rate in Dominican Republic
Dominican Republic - Exchange Rate
Peso sinks amid weaker external sector and rising uncertainty
The Dominican peso has fallen markedly against the USD in recent weeks, and on 12 June traded at 58.0 per USD, down 5.3% month-on-month and 8.7% year-to-date.
The Covid-19 pandemic is the key factor behind the depreciation. The virus has led to a collapse in tourism, and depressed exports and remittances, all three of which are key sources of foreign currency. Moreover, in response to the pandemic the Central Bank has markedly loosened its monetary stance through rate cuts and extra liquidity, further weighing on the peso. In addition, concerns over the health of the domestic economy and rising uncertainty have boosted the demand for dollars.
In an effort to support the currency, the Central Bank secured roughly USD 650 million in assistance from the IMF and has intervened in the currency market. The Bank also issued a public appeal for calm in late May, urging businesses and citizens to avoid the panic-buying of dollars.
The currency depreciation poses a risk to public debt sustainability, given the sizeable share of foreign currency denominated government debt (roughly half of total government debt according to the IMF). Moreover, the weaker peso is limiting the ability of the Central Bank to lower rates in order to support the economy, and is weighing on FX reserves—which were down USD 2.4 billion from January to May.
Our panelists currently see the peso regaining some ground as the external sector gradually recovers, although the outlook is uncertain, and hinges on the evolution of the pandemic at home and abroad. Our panelists see the DOP ending 2020 at 55.9 per USD and 2021 at 57.8 per USD.
Dominican Republic - Exchange Rate Data
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Exchange Rate (vs USD) | 45.53 | 46.34 | 47.80 | 50.27 | 52.96 |
Dominican Republic Exchange Rate Chart
Source: Dominican Republic Central Bank and FocusEconomics calculations
Dominican Republic Facts
| Value | Change | Date | |
|---|---|---|---|
| Exchange Rate | 52.96 | 0.80 % | Jan 01 |
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Economic News
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Dominican Republic: Central Bank leaves monetary policy unchanged in June amid sliding currency
June 30, 2020
At its end-June meeting, the Central Bank (BCRD) left its monetary stance unchanged for the third straight meeting, after substantial easing in March to combat the Covid-19 fallout.
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Dominican Republic: Inflation moves further below target in May
June 23, 2020
Consumer prices fell 0.11% over the prior month in May, coming after April’s 0.82% decrease.
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Dominican Republic: Peso sinks amid weaker external sector and rising uncertainty
June 15, 2020
The Dominican peso has fallen markedly against the USD in recent weeks, and on 12 June traded at 58.0 per USD, down 5.3% month-on-month and 8.7% year-to-date. The Covid-19 pandemic is the key factor behind the depreciation.
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Dominican Republic: July general elections unlikely to lead to significant shift in economic policy
June 10, 2020
On 5 July the country will elect a new president and Parliament.
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Dominican Republic: Economic activity plunges in April
June 8, 2020
Economic activity was down 29.8% year-on-year in April (March: -9.4% year-on-year) due to Covid-19 containment measures, which included a curfew, border closures and the shutdown of non-essential businesses.
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