The currency of the Dominican Republic closed with gains against the US dollar at the market close this Wednesday, June 19. Even though the US markets are closed for a holiday, its currency tried to remain firm and registered slight movements in international markets.
Federal Reserve (Fed) officials held a meeting last week in which they decided not to make changes in interest rates and maintain restrictive economic policies in the face of the “freezing” of inflation in the country.
He American dollar quoted at closing 58.79 Dominican pesos on averagewhich implied a change of 0.19% when compared to the value of the previous day, when it stood at 58.90 pesos.
In relation to the profitability of the last seven days, the American dollar accumulates a drop in 0.69%%; but in the last year he still maintains a promotion of 4.05%.
If we compare the figure with previous days, the meaning of the previous result changed, when it ended with an increase of 0.65%, without being able to establish a defined trend in recent days. The volatility referring to the last week is visibly lower than the figure achieved for the last year (10.94%), showing itself as a value with fewer alterations than what the general trend indicates recently.
Specialists predict that only one cut in interest rates will be made and this movement will be registered in the last quarter of the year.
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 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 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.
