El Caribe newspaper today highlights that there is a need to break down institutional obstacles and market structures so that currency trading in the DR can fluctuate more with market forces. The newspaper reports that the way the system works today, five money dealers receive more than 50% of the hefty profits made by the volatile exchange market. The newspaper points out that the regulated exchange market moves US$7 billion a year in the Dominican Republic. Augusto Peignand, president of the Dominican Association of Exchange Companies (Adocambio) explains the regulated market is made up by 80 exchange houses and remittance companies, in addition to commercial banks. These handle the transactions of 70% of the foreign exchange that enters the country via the export of goods and services and remittances.
According to the Central Bank, of 7 October, the exchange companies had revenues of US$74.9 million.
The newspaper points out that the market is an oligopoly. The newspaper says that five companies concentrate 53.9% of the profits, with Vimenca and Santa Cruz the leaders. Of the remittance companies, Vimenca is by far the market leader, with its alliance with Western Union.