The Dominican currency woke up with losses against the US dollar on Thursday, June 13, and the negative trend continues against the North American currency. The appreciation of the dollar continues after the meeting held by the Federal Reserve (Fed), the slowdown in inflation in the US and the generation of jobs above expectations.
According to reports from Forbes magazine, it is expected that officials of the financial entity will begin to consider cuts to interest rates until December and that 2025 will be a very busy period in this regard. Economists consider that restrictive monetary policies have strengthened the US currency and this pace is expected to continue in the coming weeks.
He American dollar is paid at the start of sessions 59.19 Dominican pesos on averageso that it implied a change of 0.32% with respect to the value of the previous session, which was 59 pesos.
Regarding the last week, the American dollar notes slight changes although, on the contrary, in the last year it still maintains an increase in 4.56%.
Comparing this data with that of past dates, it reverses the data of the previous day, where it ended with a decrease of 0.16%, without being able to establish a stable trend in recent dates. The volatility of the last seven days is noticeably lower than that accumulated in the last year, presenting itself as a value with fewer changes than expected in recent days.
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 be 4 percent. A nominal Gross Domestic Product (GDP) growth of 8.94 percent is contemplated.
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 branchthe 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.
