The Dominican peso opened another day with losses against the US dollar at the start of trading this Friday, June 7. Federal Reserve officials ruled out the idea of cutting interest rates in July, however, the latest indicators and reports on the US economy caused few banks to predict that montería laws will be relaxed.
He American dollar is paid at the beginning 59.19 Dominican pesos on averageso that it represented a change of 0.15% compared to the 59.10 pesos of the previous day.
Regarding the last week, the American dollar registers an increase of 0.36%so for a year it has still accumulated a rise of 5.6%.
This Friday the US market will focus on the monthly employment data in the United States, one of the last important data before the Fed meets next week, according to Bloomberg News. The financial entity’s officials have been clear in recent months about the patience they will have regarding the issue, as they want to be sure that all the reports provide safe ground to rethink the country’s financial policies.
If we compare the data with past days, it chains four successive sessions in positive digits. The volatility of the last seven days presents a balance lower than the volatility reflected in the data of the last year, which shows that its price is presenting less variations than expected in recent dates.
The Macroeconomic Panorama report carried out by teams from the ministries of Economy, Finance and the Central Bank predicts that for this year 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.”
In the economic fieldthe 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.
