Dominican Republic - Country Commercial Guide
Trade Financing

It covers payment methods and information on, banking systems, foreign exchange controls, and U.S. and correspondent banking.

Last published date: 2021-09-05

Methods of Payment

The following methods of payment are the most common:

  • Cash (since most Dominican companies maintain dollar accounts abroad) by electronic/wire transfers.
  • Supplier credit (once a trading relationship has been established).
  • Documentary letters of credit including stand-by letters of credit.
  • Documentary collections through the banking system.
  • Commercial credit cards, however, it is recommended that U.S. firms accept these credit cards with caution because of the possibility of fraud.

The following local firm performs credit checks on Dominican companies:

TRANSUNION

Address: Ave. Abraham Lincoln No. 1019

3rd Floor, Ens. Piantini

Santo Domingo, Dom. Rep.

Tel: 809-227-1888

Fax: 809-549-7227

E-mail: consumidor@tucredito.com.do

Banking Systems

The Central Bank of the Dominican Republic implements monetary policy and issues the national currency (Dominican pesos, commonly abbreviated as “RD$”). The Central Bank also manages external payments.

Commercial banks represent one of the principal sources for private sector financing. Most requested loans are short and medium term, ranging from 30 to 90 days for working capital or trade financing and from 1, 3 or 5 years at the most for capital expenses.  Working capital fixed-term loans require that the borrower make either periodic payments of principal and interest or a single principal balloon payment of the entire outstanding balance at maturity.  These loans are reviewed on a case-by-case basis.  Financing for construction or tourism projects may have longer terms typically from 7 to 10 years or more in a few cases. 

Indicative current interest rates for loans in local currency are as follows:

In RD$ the preferential rates range between 7 and 18 percent.
Non-preferential rates can go as high as 23-26 percent for loans denominated in RD$.
Interest rates for the commercial/corporate sector are revised usually every 6 or 12 months.
Local commercial banks offer almost the same services that a U.S. bank offers to its clients, with the exception that there are no local checking accounts in U.S. dollars, and instead, local banks offer savings accounts in U.S. dollars.

Foreign Exchange Controls

The Monetary Board sets monetary policy and oversees Central Bank operations.  It also sets banking and financial norms through resolutions.

All foreign exchange transactions operate in the private market where all sectors of the Dominican economy are free to buy and sell foreign exchange through commercial banks and exchange houses (casas de cambio).  The currency has a floating exchange rate which is currently around RD$55.00 per US$1.00.

US Banks & Local Correspondent Banks

The only full-service U.S. commercial bank in the Dominican Republic is Citibank, N.A.

Address: Ave. Winston Churchill Esq. Ave. Andres Jose Aybar

Torre Citibank, Acropolis Center – 24th Floor, Ens. Piantini

Santo Domingo, Dominican Republic

Tel: 809/ 473-2404

Fax: 809/ 955-2657

Most local banks have correspondent banking relationships in the U.S.