Central Bank says the dollar moves more, but the trend has not changed
The dollar is rising and falling more from one day to the next. According to the Central Bank, that does not mean the peso is depreciating faster. Here are the data behind its explanation.
Key points
- Average daily traded volume rose from US$ 87.92 million in 2019 to US$ 258.71 million in 2026.
- The standard deviation of the daily change in the exchange rate rose from 0.11 % to 0.38 % since late 2024.
- According to the note, that volatility is equivalent to about 6 % annually.
- % of financial and foreign exchange institutions have adhered to the Global Code of Conduct for the Foreign Exchange Market.
The Central Bank published a note from its Treasury Department explaining how the Dominican foreign exchange market works today and responding to recent criticism about the price of the dollar. The document, titled "Flotación, madurez y transparencia: formación de precios y gestión del mercado cambiario" ("Floating, maturity and transparency: price formation and management of the foreign exchange market"), appears in its Página Abierta section.
According to the note, the foreign exchange market has grown significantly. Average daily traded volume rose from US$ 87.92 million in 2019 to US$ 258.71 million in 2026, after the BCRD foreign exchange platform began operating. Over the same period, the share of the Central Bank's spot operations fell from 93.06 % to about 10 %, and this year the institution has limited itself to buying dollars to absorb surpluses. In addition, 92 % of financial and foreign exchange intermediation entities have adhered to the Global Code of Conduct for the Foreign Exchange Market, and the International Monetary Fund reclassified the Dominican exchange rate regime as free floating in 2025.
The central point of the explanation is the difference between volatility and trend. The daily variation of the exchange rate has widened: its standard deviation rose from 0.11 % to 0.38 % since late 2024. However, the note's analysis finds no change in the medium- and long-term trend. In other words, the dollar moves more from one day to the next, but that does not mean the peso is depreciating faster. Expressed on an annual basis, that volatility is equivalent to about 6 %.
The note also reports that the peso has appreciated by nearly 4 % this year and that international reserves are around US$ 15,200 million. The Central Bank says it will continue promoting competition, good practices, and new tools for risk management in the financial system.
Why it matters
If you buy, sell, or send dollars, daily fluctuations in the exchange rate will continue to affect your accounts, although according to the Central Bank they do not imply a faster drop in the peso.