The Dominican peso closed the week with losses against the US dollar at the market close this Friday, June 7. The appreciation of the dollar is due to the publication of employment data in the United States, this index reinforces the perspective that Federal Reserve (Fed) officials are going to keep interest rates high.
He American dollar was negotiated at closing 59.19 Dominican pesos on averagewhich represented a change of 0.15% compared to the previous day’s figure, when it closed with 59.10 pesos.
Taking into account the last week, the American dollar accumulates an increase of 0.36%%therefore in interannual terms it still maintains an increase in 5.6%.
Inflation in the North American country has shown signs of slowing down in recent weeks and officials of the US financial entity maintain their perspective regarding strict monetary policies given the progress in the economy and the appreciation of its currency in international markets.
According to information from Bloomberg News, Fed officials are going to hold a meeting next week and the interest rate cut is expected to take place until next September.
In relation to previous days, there were four consecutive sessions in green. In the last week the volatility was 8.71%, which is a figure lower than the annual volatility figure (10.98%), so its price is presenting less variations than expected recently.
The Macroeconomic Panorama report prepared by teams from the ministries of Economy, Finance and the Central Bank predicts that for this year both closing and average inflation will be 4 percent. Nominal Gross Domestic Product (GDP) growth is estimated at 8.94 percent.
The same document 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.
