On average, Dominican immigrants pay US$ 8.22 per remittance when sending money to their relatives back home. This is according to a 2016 study by the Center for Latin American Monetary Studies (CEMLA). Depending on the size and frequency of remittances you make, these transfer charges can accumulate to prohibitive amounts.
Therefore, if you’re among the 12%+ of Dominicans residing outside the country, it makes sense to look for inexpensive and faster ways to send money home. There are various transfer service providers and channels you could use. However, this depends on factors such as the preferred mode of receipt for the beneficiary, the providers' payout networks, speed of transfer, and the sending limits.
To help you in making the right decision when sending money to the Dominican Republic, we’ve put together an informative guide below. Read along to learn more on:
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There are multiple ways to easily send and receive money in Dominican Republic but these will largely depend on the provider you decide to use. Below you will find everything you need know about sending and receiving money.
The options available when sending money to the Dominican Republic mainly depend on the money transfer service you choose and the country you are sending from. Some of the providers allow sending from specific countries. However, there are those like WorldRemit, MoneyGram, and Xoom that allow sending from over 100 countries.
Also, each provider has specific options senders can use to transfer money to the Dominican Republic. The option to use largely depends on your preferences and convenience. However, most providers will require that you first sign up for an account and fund it before choosing the mode of transfer.
Majority of money transfer services allow for website and mobile app transfers. Others have brick and mortar stores you can visit to send money or complete transfers that you began online. Thanks to digital wallets, some providers have Paypal and Facebook messenger options you can use for transfers to the Dominican Republic. Read below to learn more on the different transfer options providers offer.
WorldRemit allows you to send money to the Dominican Republic right from the website or through a mobile app. Once you sign up for an account, you can top up using any of the following ways and thereafter transact.
Sending money to the Dominican Republic via Xoom is very simple. You have the option of Paypal integration or a minimal setup process to begin using the service. You can either use a mobile app or transact from the website. All you need to do is to input the amount you want to send, how it is to be paid out to the recipient and top up your account either through a debit or credit card or from your bank account.
Having recently expanded into the United Kingdom, Spain, Italy, and France, Xoom currently serves a total of 130 countries.
This money transfer service gives the sender lots of flexibility. You can send money online from their website, use the MoneyGram App, or walk into any physical store and send from there. You can also use the MoneyGram sendbot that allows you to transfer money through the Facebook messenger app.
For in-store sending, you can use the website to locate a store near you. With MoneyGram, you can begin the transfer process online or on the app and finish it at a physical store. Funding your transfer is simple, there is the option of a debit or credit card, bank or cash deposit.
It is important to note that for MoneyGram sendbot users, they are required to first sign up for a MoneyGram online account before transacting.
Other providers that offer similar money transfer services to the Dominican Republic include Pangea, Azimo, Remitly, and TransferWise. Transfast is only available in the United States while Sendvalu is available to people sending from Switzerland.
Money transfers have been the subject of increased regulation and legislation in many countries in the recent past. This is due to the rampant cases of money laundering and funding of illegal activities. As a result of this and many other reasons, senders are required to identify themselves and their recipients before their transactions can be initiated or completed.
To send money to the Dominican Republic the following information is required from senders. However, this varies from one provider to another.
According to a research study carried out by the Economic Commission for Latin America and the Caribbean (ECLAC), there are various reasons for the remittances coming into the Dominican Republic. In terms of percentages, a huge chunk (over two thirds) of the remittances to the Dominican Republic are aimed at covering daily living costs while savings, education, and acquisition of housing account for the rest. Some of those reasons include:
A majority of Dominican Republic immigrants remit money back home to support their families. This constitutes support for day to day living expenses.
Most of the immigrants from Dominican Republic are keen to build up assets back home such as land and housing. These act as soft landings when they return home in the future.
The main reason for immigrants heading off to countries such as the United States, Spain or Italy, is to look for greener pastures. Some of the remittances are targeted at debt repayments taken to support the immigrants as they settled down in foreign countries or to pay up historical debts.
In terms of percentages, a huge chunk (over two thirds) of the remittances to the Dominican Republic are aimed at covering daily living costs while savings, education, and acquisition of housing account for the rest.
This is mainly for siblings and close relatives of the immigrants. The remittances could be directed to the learning institutions or to the families who then withdraw and pay up.
Dominican Republic immigrants who run businesses back at home may send remittances to boost capital profiles or cash flows.
The United States accounts for about 59% of the remittances to the Dominican Republic followed by Europe at 30% and Puerto Rico at 9%. With average remittances at household level of approximately US $ 1,500 to US $ 2,000, it helps to know how this money moves and the benefits that accrue to both senders and recipients.
To grow their clientele bases, most money transfer service providers offer different modes of money transfer. With new players coming in and innovations scaling up, the benefits of online money transfers are also increasing in breadth and depth. Below are some of them:
The number of Dominican Republic nationals immigrating to other countries for jobs and better living standards is increasing. For this reason, there is bound to be a reciprocal increase in remittances back to the country.
As earlier discussed, many reasons exist for sending money to the Dominican Republic. Whatever the reason, there are certain considerations senders must make to ensure smooth, faster, and value-for-money at every point of the transfer process.
Having the right information on the different ways of sending and receiving money in Dominican Republic, the considerations to make, and the benefits of money transfer services, puts you in control of the remittance process. Now you can make informed decisions and choose value for money.
At the time this was written, one American Dollar (USD) can be exchanged for 52.8286 Dominican Pesos (DOP). The average exchange rate over the last 90 days was 52.0900 DOP per USD. The high was 53.0704 DOP per USD, while the low was 50.2360 DOP per USD.
The average volatility of the DOP was 0.15% against the USD, which is rather low. The DOP has been relatively stable for a long time. It is thus reasonable to expect exchange rates to remain relatively consistent, barring unforeseen circumstances.