Although relatively small, the Dominican Republic witnesses a considerable amount of money flowing in and out of the country, to and from the United States. In 2016, more than U.S. $4 billion made its way from the U.S. to the Dominican Republic as remittances. In the same year, around U.S. $37 million was sent from the Dominican Republic to the U.S. in the form of remittances.
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The U.S. dollar has been used as the official currency of the United States since 1792. Other than the U.S., it is also used as a primary currency in Turks and Caicos Islands, the British Virgin Islands, the Caribbean, and two British Overseas Territories. Its acceptance alongside other currencies is prevalent in some other countries such as Zimbabwe, Haiti, Belize, Costa Rica, Panama, Liberia, Cambodia, and Myanmar.
In April 2016, the U.S. dollar’s share of the international forex market turnover stood at more than 87%. Data suggests that more than U.S. $5 trillion passes through the foreign currency exchange market every day. Other than being the world’s most traded currency, it is also the most preferred reserve currency.
|Nicknames||Buck, moolah, paper, dough, dead presidents, |
bones, greenback, green
|Bank notes||$1, $2, $5, $10, $20, $50, $100|
|Coins||1c, 5c, 10c, 25c, 50c, $1|
The Dominican peso is the official currency of the Dominican Republic. It was first adopted by the country when it gained independence from Haiti in 1844. Decimalization of the currency took place in 1877, when one peso was divided into 100 centavos. The use of a second parallel currency, the Franco, lasted from 1891 to 1897.
The Dominican Republic replaced the peso with the U.S. dollar as its official currency in 1905, with five pesos valued at one U.S. dollar. The Peso Oro was introduced in 1937, and it was used alongside the U.S. dollar until 1947. Upon its introduction, the Peso Oro was at par with the U.S. dollar.
The Peso Oro was declared a fiat currency in 1963. Since then, its value has depended on supply and demand, and not on any underlying commodities. In July 2010, the country turned to using polymer bank notes for the first time. The Peso Oro was renamed the peso in 2011.
|Currency symbol||$, RD$|
|Bank notes||$50, $100, $200, $500, $1,000, $2,000|
|Coins||$1, $5, $10, $25|
U.S. Dollar / Dominican Peso Historical Rates
After its second independence from Spain in 1865, political instability in the Dominican Republic caused its foreign debt to increase. This, coupled with high inflation and a considerable decline in the price of sugar, led to country to bankruptcy by 1902. The U.S. formed a protectorate over the country in 1905, replacing the peso with the U.S. dollar. A new Dominican government was established after the U.S. left in 1922.
In the years that followed, while the country was ruled by dictator-like governments, its economy continued to grow. Inflation remained in check and the economic growth continued even after the civil war in 1965.
The peso remained largely stable against the U.S. dollar during the 1980s and 1990s, mainly because of the positive relationship between the two countries and high export rates. However, the peso’s value took a significant turn for the worse in 2005 because of increased inflation. It has continued to recover slowly since then.
Use of the U.S. dollar as a reserve currency against the peso is fairly common now, and it is used as a reserve currency by the Central Bank of the Dominican Republic. This allows for U.S. dollar – peso exchanges at near mid-market rates.
USD/DOP in the last five years
|U.S. $1 =|
|1 July, 2013||RD$ 41.900|
|1 July, 2014||RD$ 43.660|
|1 July, 2015||RD$ 45.075|
|1 July, 2016||RD$ 45.955|
|1 July, 2017||RD$ 46.804|
USD/DOP in the last five months
|U.S. $1 =|
|1 March, 2018||RD$ 49.380|
|1 April, 2018||RD$ 49.465|
|1 May, 2018||RD$ 49.465|
|1 June, 2018||RD$ 49.455|
|1 July, 2018||RD$ 49.877|
What Affects USD/DOP Rates?
The Dominican Republic boasts of being the second largest economy in the Caribbean, with tourism and agriculture being the region’s main drivers. As a result, any negative growth in these areas may have an adverse effect on the peso’s value. Other factors that affect the value of the USD/DOP currency pair include inflation rates, monetary policies, socio-political conditions, as well as international trade of both countries.
If you wish to transfer funds the U.S. to the Dominican Republic, or if you want to send money from the Dominican Republic to the U.S., the USD/DOP exchange rate requires your attention. Fortunately, there are several overseas money transfer companies that provide bank-beating rates consistently, and some even provide hedging tools.