They suggest formalizing the receipt of remittances to facilitate access to credit

Dominican Republic has ample opportunities to enhance the impact of remittances on its economic dynamics, through digitalization initiatives and the formalization of money transfers, which facilitate access to credit and other financial services. Thus stated the director of the Migration, Remittances and Development program of the Inter-American Dialogue forum, Manuel Orozco, during a conversation held by the Association of Multiple Banks of the Dominican Republic (ABA), which was attended by the Chancellor of the Republic, Roberto Álvarez; the president of the Association of Banks, Rosanna Ruiz; presidents and senior executives of financial institutions, representatives of the Central Bank and the Superintendency of Banks and the remittances sector. In his keynote speech titled "Towards a Characterization of Remittances in the Dominican Republic: Trends, Challenges and Perspectives for the Future," Orozco stated that "the challenge is how to further enhance that impact, once cash transfers are formalized into the financial ecosystem so that they can benefit from credit and use digital transfer mechanisms, because that increases income availability by 15%. So the impact exists but the potential of that is greater." When presenting a study on the currencies that the Dominican diaspora sends to the country each year, the researcher added that this better use is viable, because the flow of remittances is supported by a fairly strong financial network composed of banking and non-banking institutions, with reach throughout the country and the ability to pay in real time. The representative of the Inter-American Dialogue added that these strengths can be expanded with financial education initiatives for beneficiaries, as well as with the inclusion of actors who are outside of digitality or banking, such as small grocery stores and other businesses. For his part, the Chancellor of the Republic, Roberto Álvarez, after considering the high impact of remittances on the economy and on the most vulnerable social conglomerates, highlighted the importance of legality in more than 90% of the diaspora in the United States, the convenience of digital channels that enhance greater banking at lower costs, and the commitment through consulates and embassies to be spokespersons for the promotion of initiatives that promote the robustness of this strategic pillar for the 2036 goal. While the president of the ABA, Rosanna Ruiz, highlighted the contribution of linking the diaspora with the country, through digital mechanisms and at low costs, which would expand the possibilities of generating a culture of savings and investment in both senders and recipients, and also access to financial products, thus contributing to the achievement of their goals, such as, for example, the acquisition of housing. Multiplier effect of remittances

The impact of remittances on economic activities, the challenges for the financial system, as well as the prospects for the evolution of annual amounts were part of the discussion held by the Association of Banks, where it was highlighted that, according to reports from the Central Bank, the country received US$10,756 million in remittances in 2024, while in June 2025 US$5,826.7 million had already entered, for an increase of 7.9% compared to the first half of the previous year.

In that sense, Manuel Orozco explained that these resources represent the country's main source of foreign currency, practically alongside the total exports, and directly affect people's lives and finances. "Remittances really have a direct impact on more than one and a half million households in the Dominican Republic, a country that has four million households," said the researcher, with studies in political science and public administration. Regarding this, he added that these effects are manifested in the private consumption of individuals and households, by representing an acquisition complement, especially in low-income segments, and have their incidence in productive and financial activities. In addition to his leadership role at the Inter-American Dialogue, a hemispheric forum for analysis that promotes democratic governance, Manuel Orozco is a senior fellow at the Center for International Development at Harvard University and a senior advisor to the International Fund for Agricultural Development.