In one month, the exchange rate grows at a rate that is close to the inflation rate of 2019

In one month, the exchange rate grows at a rate that is close to the inflation rate of 2019

As of May 28, the weighted average exchange rate for the sale of dollars by financial institutions was RD $ 56.27 per one dollar. While, for the purchase, it was RS $ 56.35 per one dollar, according to the most recent statistics that the Central Bank has disclosed on the exchange market. The exchange rate has maintained a sustained upward slide as a result of the impact of the Covid-19 pandemic on the external sector of the Dominican economy.

According to the exchange statistics, based on the weighted averages of the operations of the institutions that operate in that market, during May the rate at which banks buy dollars grew by 3.29%, in relation to the last day of April. While, in the case of sales, the increase is 3.30%. These operations correspond to commercial banks, which set the course for the rest of the market, since they concentrate 75% of net exchange operations, while the rest of the currency operators made up of foreign exchange agencies, comprise the remaining 25%.

According to data from the Central Bank, in the case of foreign exchange agents, the growth of the weighted average exchange rate for sale and purchase was very similar: 3.29% for purchase, and 3.29% for the sale. It is a growth that makes imported final goods more expensive, reduces the value of savings in pesos, and affects the ability of companies to buy goods abroad and supplies for their production processes. It also affects the purchasing power of employees in national currency. It also increases the cost of the household household basket. Although the depreciation rate of the Dominican peso is different from the inflation rate, it has a direct impact on the internal prices of goods and services.