The Central Bank of the Dominican Republic (BCRD) reported that in March 2021 Remittances registered US $ 994.9 million, an amount that exceeds by US $ 474.8 million those received in March 2020.
This means that for the first quarter remittances were received for US $ 2,548.7 million, a 49.6% growth compared to the same period of 2020, and 46.2% compared to the first quarter of 2019.
US economy benefits
The BCRD explains that the increasingly favorable economic conditions in the United States, country where 87.0% of March flows came from, continues to be the main factor that has influenced the behavior of remittances.
The institution emphasizes that one of the most relevant aspects of the North American economy refers to employment, whose figures indicate that 916,000 new jobs were created in March, thus registering an unemployment rate of 6.0%, after having been in 6.2% in February. In a particular way, Hispanic unemployment in the United States decreased from 8.5% in February to 7.9% in March 2021.
Similarly, the impact of the financial assistance provided by the US government to its population is highlighted, benefiting the Dominican diaspora. In this sense, it is highlighted that with the approval in the United States of the “American Rescue Plan” introduced by President Joe Biden, the Dominicans residing in the United States were further benefited.
This rescue plan, launched last March, consists of a stimulus package valued at US $ 1.9 trillion of additional assistance for individuals, small businesses and local and state governments, implemented with the purpose of increasing direct transfers.
Another important factor to understand the behavior of remittances is that between the months of March and April 2021 in the United States, government tax refunds are also made, which additionally affects the disposable income of Dominicans in that country.