New Zealand Dollar to Dominican Peso Exchange Rate

The Dominican peso

The Dominican peso was introduced in 1844, when the Dominican Republic gained its independence from Haiti. It’s the second-largest economy in the Caribbean, with tourism bringing in more than $1 billion annually.

The Dominican peso enjoyed a relatively stable exchange rate through the 1980s and 1990s, due to a positive relationship with the US and high export rates. That stability was shaken when the currency took a sharp decline in value in 2004 because of increased inflation. The peso is slowly recovering to this day.

Today, the US dollar is held as a reserve currency against the Dominican peso. This means that many merchants accept the dollar as payment in the Dominican Republic, and that trading dollars for pesos allows for exchanges much closer to the mid-market rate when compared to other countries or currency conversions.

Factors that affect how any currency trades against another are sociopolitical atmosphere, prices and inflation rates, foreign trade and monetary policy and export-to-import price ratios. Less aggressive factors are consumer confidence about the economy and economic growth, the strength of other currencies, investor speculation and day-to-day news about natural disasters, elections and new government policies.

Overall, if you want to predict where the currencies are headed, consider this fact: the value of a currency is heavily related to the strength of its country’s economy.