How does a cambio make money?

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RafaelPabon

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Nov 11, 2007
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I have a friend from Eastern Europe wanting to invest some money in a business here in the DR, and one of the businesses they are most interested in is a cambio. They want to exchange currency, cash checks, etc....

The question is, how do these places actually make the money doing this?

Any input would be appreciated and sample business plans to have a better idea also appreciated.

The business would be in the Higuey and Bavaro area.

Thanks,

Rafael
 
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suarezn

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Feb 3, 2002
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Buy low, sell high...have a bodyguard armed to the teeth to protect you...Very dangerous business.
 
Tamborista

Tamborista

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Apr 4, 2005
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A cambio business is not for a non Dominican unless you are well connected.

To answer your question, a cambista profits by the tiny 20 centavo spread between what he pays the street to change Dollars/Euro/Pounds into Pesos, and what the bank pays him for larger trades.
 
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DavidZ

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Aug 29, 2005
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Tamborista said:
A cambio business is not for a non Dominican unless you are well connected.

To answer your question, a cambista profits by the tiny 20 centavo spread between what he pays the street to change Dollars/Euro/Pounds into Pesos, and what the bank pays him for larger trades.
Click to expand...

In tourist areas like Cabarete and Puerto Plata, there's sometimes up to a 200 centavo spread...
 
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DavidZ

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right now the majority of the cambios in Cabarete are advertising 33 to 1...Caribe Express is 34.70 to 1...there's 170 centavo spread right there...you could make 170 pesos (almost $5) for every $100 changed...
 
Tamborista

Tamborista

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Bronxboy said:
Curious question

Why are the airport rates so bad?:confused:
Click to expand...

Why do dogs lick their balls?

I can honestly guess, because Global Cambio probably shares part of the 500 centavo spread with Aerodom for the privelage of ripping off unsuspecting tourists the minute they get off the plane in SDQ and POP.

Most tourists landing in the country for the first time have no clue what the real tasa is. It's called opportunity!
 
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Thandie

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Nov 27, 2007
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wow

DavidZ said:
right now the majority of the cambios in Cabarete are advertising 33 to 1...Caribe Express is 34.70 to 1...there's 170 centavo spread right there...you could make 170 pesos (almost $5) for every $100 changed...
Click to expand...

Sounds good to me!
 
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BushBaby

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Jan 1, 2002
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catcherintherye said:
I'll count the money.
Click to expand...
One for you, ... one for me,
One for you, ... one for me,
One for you, ... one for me, (oh & we'd better put to one side one for Robert!!)
One for you, ... one for me, ................................................

Eastern Europe? Money Exchange???? Money to invest????? :ermm: :surprised
Sounds like the beginnings of a money laundering operation!!!!:pirate: :pirate: ~ Grahame.
 
BermudaRum

BermudaRum

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Oct 9, 2007
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BushBaby said:
One for you, ... one for me,
One for you, ... one for me,
One for you, ... one for me, (oh & we'd better put to one side one for Robert!!)
One for you, ... one for me, ................................................

Eastern Europe? Money Exchange???? Money to invest????? :ermm: :surprised
Sounds like the beginnings of a money laundering operation!!!!:pirate: :pirate: ~ Grahame.
Click to expand...

Well you are in the DR!:bunny:
 
C

catcherintherye

Silver
Mar 2, 2008
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BushBaby,
I was thinking more along the lines of:

One for me, one for me
one for me, one for me
one for me, ..........

It would much easier that way, as long as the Eastern European "business man" wasn't around. Then it might be a tad risky.

By the way, is Eastern Europe the same thing as "The new Europe"?
 
Bronxboy

Bronxboy

Well-known member
Jul 11, 2007
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DavidZ said:
The answer to that philosophical question is "Because he can!"... IOW, that's why the cambios at the airports charge such a high commission...
Click to expand...

I always thought these kinds of businesses were regulated by the government.

But then again, this is the DR.
 
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