The Dominican peso closed today’s session with losses against the US dollar, the exchange rate is positioned near the 60 pesos mark per “greenback” and with these records it maintains the negative trend of this week.
The US currency remains strong in the Dominican market as members of the Federal Reserve have shared their opinions regarding monetary policies and the in-depth analysis of economic reports in order to make interest rate cuts. Even this week one of the members shared that if necessary she would increase rates in order to control inflation in the North American country.
He American dollar was paid at closing to 58.96 Dominican pesos on averagewhich represented a change of 0.27% compared to the previous day’s value of 58.80 pesos.
Considering the last seven days, the American dollar marks an increase in 0.44%%so that in interannual terms it still accumulates an increase of 4.21%.
If we compare the data with previous dates, the price reversed the previous day’s price, where it dropped by 1.01%, showing a lack of stability in the results lately. In the last week, volatility is lower than the figures achieved for the last year (10.93%), presenting itself as a value with fewer changes than the general trend indicates recently.
The Macroeconomic Panorama report prepared by teams from the Ministries of Economy, Finance and the Central Bank predicts that both the closing and average inflation for this year will remain at 4 percent. A nominal growth of the Gross Domestic Product (GDP) of 8.94 percent is expected.
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 pesos gold bills were issued to mark 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 soared outside the Central Bank’s target range.
This situation also caused a fiscal deficit due to unexpected subsidies to offset price increases, while the conflict in Europe also had an influence, since the Dominican Republic is a net importer of oil, natural gas, soybeans, sorghum, wheat and corn.
