The Dominican peso has appreciated 8.4% against the dollar this year.
The appreciation of the Dominican peso against the dollar reduces the competitiveness of national exports and lowers the peso income of other sectors that generate foreign currency, such as investors and families that receive remittances, warned economists Henri Hebrard and Juan del Rosario.
They agreed that this phenomenon is not exclusive to the Dominican Republic, since countries with similar economic profiles, such as Costa Rica and Colombia, are undergoing comparable processes of strengthening their currencies against the dollar, driven by massive inflows of foreign currency into their economies.
The Dominican peso has appreciated 8.4% against the dollar this year, with the exchange rate falling from RD$63.30 at the beginning of 2026 to around RD$58.12. This change means that those receiving dollars get fewer pesos per dollar, while sectors whose costs are primarily in the national currency face a reduction in their income when expressed in pesos, ultimately affecting their profit margins and competitiveness, Hebrard explained.
Both economists pointed out that the effect is not yet fully reflected in the statistics because, for much of the year, the exchange rate remained at higher levels.
Del Rosario warned that the situation is becoming more complex for exports because the Dominican Republic is also facing an increase in the tariff applied by the United States, which rose from 10% to 12.5%, while several Central American competitors maintain a 10% tariff. He believes that both factors are simultaneously impacting the competitiveness of Dominican products, especially those that compete primarily on price.
On the other hand, Hebrard pointed out that families receiving remittances are among the most affected groups, since this year’s budget projected they would receive dollars at 65 pesos, while they have received them at 58 pesos. He also explained that the impact extends to tourism activities such as Airbnb rentals, whose owners receive dollars but have costs in pesos. He said that for tourists and the industry itself, there is no effect because they pay and sell in dollars.
