Cabarete Exchange Rate Cartel (not OPEC but CERC)

Conchman

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While walking through Cabarate you can notice all exchange houses always have the same rate. Every single one, without exception.

They must get together in the morning and set the rate. Its always about 2-3 points below the bank rate. Nice little racket they got going.
 

Escott

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Conchman said:
While walking through Cabarate you can notice all exchange houses always have the same rate. Every single one, without exception.

They must get together in the morning and set the rate. Its always about 2-3 points below the bank rate. Nice little racket they got going.
I have mentioned that for a while in my list of dislikes about Cabarete. Besides pricing in Dollars, paying 2x more for a presidente than in Sosua and the Stankin traffic, that tops my list:)

Scott
 

gerd

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Chris said:
Right outside the Cita del Sol, right by the mini golf, is a fellow that usually gives us the going rate - despite the cabarete cartel.
Have you tried Banco BHD?
 

Conchman

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Escott said:
I have mentioned that for a while in my list of dislikes about Cabarete. Besides pricing in Dollars, paying 2x more for a presidente than in Sosua and the Stankin traffic, that tops my list:)

Scott


Can't really blame anyone for pricing in dollars though, can we?
 

GirlieGirl

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hey hey hey now

I own an exchange bank... dude business is business... if someone does not want to go into western union and use their passport and deal with the lines and instead want to exchange with us for ease and simplicity... think of it as a service charge! It is a tourist town... that is how it is done...
 

Escott

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Conchman said:
Can't really blame anyone for pricing in dollars though, can we?
Sure I can. Price it in pesos at what ever rate you want. I look at these people and ask, am I in the US? I only carry pesos my friend. I don't carry dollars. Cabarete is a rip off as far as I am concerned although it doesn't stop me from going there I find it insulting to pay 2x the cost of a simple beer and pay the same price for water I pay for beer in Sosua the next town.

You think it is me?

Scott
 

Barnabe

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GirlieGirl said:
I own an exchange bank... dude business is business... if someone does not want to go into western union and use their passport and deal with the lines and instead want to exchange with us for ease and simplicity... think of it as a service charge! It is a tourist town... that is how it is done...

As a moneychanger you know most people do not "realize" you're working.. This service should be free.. The best exception from my experience being the Brits, that have been well "educated" by Thomas Crook and colleagues.

I do not know the North Coast, but in SD I would bet the real business is not with tourists, and even less with AI tourists..

One specific question: did you have problems to get a business licence? I might open a small exchange in SD, better business there than in France now. I have been in that business in Paris for 15 years now. I know you need 2 millions pesos capital but I wonder if the Superintendencia de Bancos makes problems.

Thank you if you can answer, and if you can't, have a good business anyway.

Barnab?
 

Escott

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GirlieGirl said:
I own an exchange bank... dude business is business... if someone does not want to go into western union and use their passport and deal with the lines and instead want to exchange with us for ease and simplicity... think of it as a service charge! It is a tourist town... that is how it is done...
I never had to use a passport at Vimenca.
 

toneloc24

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Escott said:
Sure I can. Price it in pesos at what ever rate you want. I look at these people and ask, am I in the US? I only carry pesos my friend. I don't carry dollars. Cabarete is a rip off as far as I am concerned although it doesn't stop me from going there I find it insulting to pay 2x the cost of a simple beer and pay the same price for water I pay for beer in Sosua the next town.

You think it is me?

Scott

I agree with Scott. I tend to leave establishments when they change their prices to something other than the national currency. Stupid gringo prices!!!

It's similar to going into an English pub here in the US, and everything is priced in British pounds. Does that make sense? RD is not a dollarized country. I would venture to guess that non-Dominican businesses comprise most of the culprits of this practice, and take advantage of the ignorance of many tourists.

Business people should make business adjustments to fit the economy, even if it takes a little more time to adjust the menu pricing in pesos.

For example, I have this problem with Moura Mai in Sosua. Nice people, nice establishment, great food, good service.......but they rape you on the exchange from pesos to dollars. In January, I took two friends to dinner there. Cost me about 1700 (approx. $35-40 USD) pesos for 3 dinners plus a bottle of wine etc. Went back in February, pricing changed to dollars, pretty much the same deal, but it cost me $77!!!! Never went back. Only succumbed to it that time because it was Valentine's weekend, and my other choice, The Waterfront, was fully booked. By the way, The Waterfront was still priced in pesos, and still reasonable.

In Cabarete, I did notice the same lower-than-market rate at several casas de cambio. What did I do when I needed money? Use the ATM. Or get change wherever else I'm headed. Or even stop in Sosua, just to exchange money. Several places with better than bank rates. If Cabarete casas de cambio are not "mobbed-up," then wouldn't it make more sense to be that casa that offers the best rate? Would definitely mean more foot traffic, esp. as tourists will refer others there.

Just my opinion.
 

Barnabe

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Escott said:
I never had to use a passport at Vimenca.

Next time you use Vimenca for amounts above 10000 USD, quite probably they will comply with drug laundering regulations and ask you for an ID, (like in the States I think).

Barnab?
 

Robert

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Vimenca in Santo Domingo appears to now require "real" ID regardless of the amount when changing RD$ to US$. A few weeks ago I tried to change some US$ at Vimenca using a "good" copy of my cedula, no way.

Luckily the bank next door just wanted to see the US$ :)
 

gringo in dr

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Barnabe said:
Next time you use Vimenca for amounts above 10000 USD, quite probably they will comply with drug laundering regulations and ask you for an ID, (like in the States I think).

Barnab?

Not very man people trading $10,000 USD into inorganic pesos theses days.

As for ID, cedula works just fine. This is the DR not the US. When I can I might turn in my US passport for good.
 

GirlieGirl

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business license

my lawyer did it all for me.... it took about three weeks and I had everything back in a nice portfolio with a whole bunch of stamps. I am not sure what the requirements are or were... I certainly did not have 2 million pesos in cash capital... if they looked at the corporation as a whole with inventory asset in the store as well as equipment in the cafe/exbank it might come up to about that... I am unsure though... sorry.

GG
 

Barnabe

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GirlieGirl said:
my lawyer did it all for me.... it took about three weeks and I had everything back in a nice portfolio with a whole bunch of stamps. I am not sure what the requirements are or were... I certainly did not have 2 million pesos in cash capital... if they looked at the corporation as a whole with inventory asset in the store as well as equipment in the cafe/exbank it might come up to about that... I am unsure though... sorry.

GG

2 millions in cash or assets, that's what the book says, among other very restrictive things.
Now I guess it also depends on the lawyer you have.
Given the 3 weeks time, you have a good lawyer for sure.


Thanks for your input, I never suspected it might be so quick,

Barnab?
 
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