The Dominican peso closed the day with losses against the US dollar after the meeting held by the Federal Reserve (Fed) this Tuesday and throughout Wednesday. The North American currency continues to strengthen in the markets as restrictive monetary policies remain in the country and interest rates remain unchanged.
He American dollar was paid at closing to 59.23 Dominican pesos on averagewhich represented a change of 0.35% with respect to the price of the previous day, when it closed with 59.02 pesos.
Taking into account the last seven days, the American dollar marks a rise in 0.22%%for this reason in the last year it still maintains an increase in 4.63%.
According to information from Forbes magazine, Fed officials specified that the rate cuts will be delayed and are expected to take place until December. The US currency has strengthened in recent weeks due to the slowdown in inflation and the report on job creation in the country.
Regarding the variations of this day compared to previous days, it reversed the result of the previous day, which resulted in a drop of 0.28%, showing recently a lack of continuity in the results. Regarding the volatility of recent dates, it was noticeably lower than that accumulated in the last year, showing itself as a value with less variations than usual in recent days.
The Macroeconomic Panorama report carried out by teams from the Ministries of Economy, Finance and the Central Bank predicts that by 2024 both closing and average inflation will be 4 percent. A nominal Gross Domestic Product (GDP) growth of 8.94 percent is contemplated.
The same analysis 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.
