Dominican peso appreciates 8.1%; central bank denies intervention

The Dominican peso has appreciated 8.1% against the US dollar since the end of 2025, and 5.4% year-on-year, according to the Central Bank of the Dominican Republic (BCRD). In a 'Página Abierta' analysis, the bank attributes this to strong inflows from exports, tourism, remittances, and foreign direct investment, which generated an additional US$2,800 million in the first half of the year Source: Listín Diario. The BCRD explicitly denies that its direct interventions caused the appreciation, noting it has bought US$415 million in 2026 without selling in the spot market Source: Diario Libre.

Policy framework

The BCRD explains that since 2012 it operates under an inflation-targeting scheme with a 4% ± 1% objective, which has anchored expectations to inflation rather than the exchange rate Source: El Caribe. In 2025, the IMF reclassified the Dominican Republic's exchange-rate regime from managed to floating, meaning the currency's value is determined by market supply and demand Source: Hoy. The bank states that interventions aim only to moderate risks to inflation and financial stability from excessive volatility Source: El Día.

Economic outlook

The BCRD projects inflation will close 2026 within the target range, with a current-account deficit of about 1.3% of GDP, financed nearly three times by foreign direct investment Source: Diario Libre. It emphasizes the country's macroeconomic strength, with growth near potential and a robust financial system Source: Listín Diario. The appreciation trend is observed across most Latin American inflation-targeting countries Source: El Caribe.