The Dominican Peso depreciated against the US dollar at the close of trading on January 4th, with the United States currency gaining more than half a percentage point of its value. The US dollar was paid at the close at an average of 58.12 Dominican pesos, marking a 0.69% change compared to the previous session. According to Bloomberg, the lowest price of the US currency throughout the day was 57.95 Dominican pesos per unit, while the highest price was 58.33 Dominican pesos per unit. The US dollar has seen an increase of 0.99% in the last week and 6.43% over the last year, with three consecutive dates of increase in recent days. Overall, the currency has been experiencing greater stability.
In terms of the country’s economic outlook, a report predicts that closing and average inflation will remain at 4 percent by 2024, with nominal Gross Domestic Product (GDP) growth estimated at 8.94 percent. The report also indicates an expected real GDP expansion of 4.50% to 5.00% for this year, with a central projection of 4.75 percent. The Central Bank of the Dominican Republic ended the year with a preference rate of 7 percent, which will be a key factor for the exchange rate.
The Dominican Peso, abbreviated as DOP, has been the official currency of the Dominican Republic since 1971. Banknotes currently in circulation include denominations of 50, 100, 200, 500, 1,000, and 2,000 pesos oros. Meanwhile, the 5 and 10 peso bills have been replaced with 5, 10, and 25 peso coins, and the 500 and 2,000 peso gold bills were issued on the occasion of the 500th anniversary of the discovery of America and the arrival of the new millennium. All bills carry the phrase: “This bill has liberating force for the payment of all public or private obligations.”
The Dominican Republic is one of the countries that receives the most dollars in remittances, making the exchange rate an important factor in the country’s economy.