The Dominican peso lost value against the US dollar at the market close this Wednesday, June 5, and closed above the 59 peso mark as the latest reports in the United States indicated that there was a slowdown.
US Federal Reserve officials maintain their cautious stance on the country’s monetary policies. According to information from Bloomberg News, talk about possible interest rate cuts is expected to begin in September if the indices maintain the same levels.
On the last day the American dollar was paid at closing to 59.13 Dominican pesos on averagewhich represented a change of 0.39% when compared to the 58.90 pesos of the previous day.
In relation to the profitability of the last week, the American dollar notes an increase in 0.22%%so that in interannual terms there is still an increase in the 4.47%.
In relation to the changes of this day compared to previous dates, it added two successive sessions of increase. Regarding the volatility of recent days, it was lower than that accumulated in the last year, so we can say that it is going through a period of greater stability recently.
The Macroeconomic Panorama report prepared by teams from the ministries of Economy, Finance and the Central Bank predicts that by 2024 both closing and average inflation will remain at 4 percent. Nominal Gross Domestic Product (GDP) growth is expected to be 8.94 percent.
The same report indicates that for this year an expansion of real GDP of between 4.50% to 5.00% is expected, with a central projection of 4.75 percent.
He Dominican peso is the official currency of the Dominican Republic It is abbreviated as DOP and its creation dates back to 1971 after the breakup of the gold standard. At first it was called “gold peso” or “Dominican gold peso”.
In 2010, a modification was made to the Constitution to define that “The national monetary unit is the Dominican Peso”; After that, in 2017, a gradual replacement of the bills and coins with the old inscriptions of Dominican pesos began.
The banknotes that are currently in circulation are 50, 100, 200, 500, 1,000 and 2,000 pesos oros. The 5 and 10 peso bills stopped circulating and were replaced by coins of 5.10 and 25 pesos respectively. Meanwhile, 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.
It should be noted that all the bills carry the phrase: “This bill has liberating force for the payment of all public or private obligations.”
Regarding the economythe Dominican Republic presented a solid performance in 2022 that has been clouded by low income growth due to an increase in prices due to the inflationwhich shot outside the Central Bank’s target range.
This situation also caused a fiscal deficit due to unexpected subsidies to counteract price increases, while the conflict in Europe also influenced, since the Dominican Republic is a net importer of oil, natural gas, soybeans, sorghum, wheat and corn.
