At the opening session on September 1, the euro is quoted at an average of 67.96 Dominican pesos, representing an increase of 0.52% compared to the previous closing price of 67.61 Dominican pesos.
Over the past week, the euro experienced an increase of 0.68%, although its year-on-year performance shows a decline of 6.07%. In recent days, the exchange rate of the euro against the Dominican peso has shown a positive trend, marking an increase in its value. Current volatility stands at 7.2%, below the reference of 12.23%, suggesting greater stability in the market.
Regarding economic projections for 2026, the Dominican Republic presents a promising outlook both economically and politically, according to a report from UBS Financial Services. Real GDP growth is expected to reach 4% by that year, driven by lower interest rates and a favorable international environment. Political stability and pro-market policies are expected to continue boosting the country’s economic dynamism.
For 2026, it is anticipated that the reduction of interest rates will stimulate both domestic demand and investment, while a more favorable external environment will benefit the tourism sector. Additionally, a targeted fiscal stimulus is expected to contribute to strengthening economic activity during the year.
The Dominican government has adopted an active fiscal approach to address moderate growth. Congress has approved a supplementary budget that will increase capital spending by 0.4% of GDP for 2025, widening the overall deficit to 3.5% of GDP. For 2026, the Ministry of Finance projects an overall fiscal deficit of 3.2% of GDP and a primary surplus of 0.5%.
Among the factors influencing the evolution of the exchange rate are the monetary policy decisions of the Central Bank of the Dominican Republic and the Federal Reserve of the United States, domestic dollar demand related to imports, and the behavior of the local economy. The Central Bank estimates that the exchange rate could reach approximately $66.35 in September 2026 and around $69.15 a year later, anticipating a trend of continuous depreciation.
The analysis also indicates that gross public debt will remain stable at around 58% of GDP over the next 12 to 18 months, due to the absence of unforeseen macroeconomic events. UBS highlights that surpluses derived from service exports and remittances will offset deficits in the income accounts and trade in goods, projecting that the current account deficit will range between 2% and 2.5% of GDP by the end of 2025 and 2026.
Net foreign direct investment is estimated to be in a range of 3.5% to 4.0% of GDP, with sectors such as tourism, commerce, industry, energy, and real estate standing out. This investment is considered sufficient to cover the external gap.
Finally, the report warns about the risks associated with adverse climatic events and governance challenges, common in emerging markets, although it maintains an optimistic outlook on the country’s economic indicators for 2026.
Source: www.infobae.com
