Reference exchange rate for the dollar closes the year at RD$ 58.2565

Santo Domingo—2023 concludes with a reference exchange rate of the dollar at RD$57.8265 pesos for the purchase and RD$58.2565 pesos for the sale, according to the Central Bank at its close yesterday, Friday, December 29—the highest figures since August 10, 2020, when it reached RD$58.4986 the sale.

At the beginning of the year, on January 2, 2023, the rate was RD$55.9819 for the purchase and RD$56.4142 for the sale. From March 7, the purchase was, on average, RD$54 until June 26, when it rose to RD$55. Then, it went on to cost an average of RD$56 as of July 28 and remained for five months with minimal oscillations until December 12, when it reached RD$57.0349, and since then has shown slight increases in a few weeks.

The Association of Multiple Banks of the Dominican Republic (ABA) explained that these increases respond to a seasonal pattern of closing and beginning of the year of the economy, “a situation that, for decades, the monetary authorities have circumvented without putting at risk the relative stability of the exchange rate, under the premise that its price corresponds to market conditions and to maintain the competitiveness of the sectors that generate foreign exchange.”

The entity responded to HOY that the depreciation levels are below the annual averages (around 4% per year), thus closing a year with inflation control and a financial system that maintains its position in the region regarding low delinquency, profitability, and solvency.

Last Tuesday, the 26th, the Central Bank announced that it would inject US$200 million into the foreign exchange market through its electronic foreign exchange trading platform this week and at the beginning of January to provide adequate liquidity conditions in foreign currency.

The president of the National Importers Association (ANI), José Antonio Álvarez, highlighted that “there has been some shortage to buy dollars, or rather limitations in the last 6-8 weeks and since the CB announces injection it appears, but it quickly runs out due to the demand.”

He indicated that he does not consider that there is speculation with the currency, “although there are always those who take advantage of it, I perceive it more as limitations on the part of the regulator.” He said that this shortage of dollars and increase in the rate will impact consumer prices if the trend continues.