Ken Robb: Banking in the DR 401
Ken-
Point #1: Open an account in US dollars. If you are going to live here, also open a peso account. NEVER keep more money in the peso account than you will need for the next month or so. You are protecting yourself against devaluation of the peso against the dollar, and the way that this government is spending money, and borrowing more money to spend, this won't be far off. Protect the money you have by keeping it in U.S.dollars here. (the reason peso accounts pay much higher interest rates is the instability of the peso, and a likely possibility of a devaluation).
Point #2: NEVER deposit a check into a Dominican bank. Why?? (everyone is asking??) - because they tie up your money for weeks, and use it for free. Bankers here don't deposit checks in their own banks, they use a cambio, why on earth wouldn't you? They don't want to pay the commission to Banco Central either (oh yes, Banco Central takes a slice too if you put a check into the conventional banking system).
Listen- get friendly with a GOOD Cambio. Of course , they will get a copy of your passport, and your cedula if you have one , and your phone numbers and address (you would too, wouldn't you??) If you want to get $$, or want to move money here from anywhere, and deposit it here, FIRST, go to the cambio and write your check to him. Tell him you want US dollars - yes, he will take a slice, but it will be a heck of a small slice (at most, 1%), and he will count the dollars into your hands. No hold, no other fees, no waiting, just the cash, and NOW!
Now, I know you are next thinking, My God GringoCarlos, you want me to walk into the street with a bunch of US dollars bulging in my pockets and get killed over it?? No way Jose. Tell your friend in the cambio that you want to deposit this into your bank account, and here is a deposit slip, and you will wait while his messenger does this. In this way, it's HIS money on the street until it is deposited in your account. You may wait an hour for the deposit slip, so bring a book, or look at his secretary. Smaller cambios may not offer this, so find one that does, and get friendly with them.
This won't work if you are a visitor, unless the cambio gets to know you very well, and you are here a lot. If you have a respectable Dominican friend who will introduce you, do that. Any Dominican with any money has a cambio they use. (and probably a foreign bank account as well). A lot of people here will probably think, oh sure, good luck - I can't do it, how can anyone else?, but they are wrong. Find a Dominican friend in a suit, and everything is possible here.
A lot of cambios, once they know you are good for it, and that you won't bounce a check on them, may not charge you at all. If the peso starts going up,up,up against the dollar, they may not cash your check for months, because they are making money hanging onto the dollars, and get a higher rate of pesos when they finally do cash your check also. The peso exchange rate has NEVER gone down, only up, up, up.
I think this covers it. Of course I will wait for all of the flak.Buena suerte.
