Why are more and more Dominicans deciding to save in dollars?

Over time, the savings trend in the Dominican Republic has shown sustained long-term growth, diversifying into other foreign currencies to expand banking penetration and seek stability amid local depreciation and inflation.

Proof of this is the statistics of the Superintendency of Banks, which show that almost 30% of the savings and deposits in the Dominican Republic’s financial system are denominated in “foreign currency,” and that banks maintain a credit portfolio that is 21.9% in dollars.

According to economist and financial consultant Jesús Martínez, the profile of people accustomed to saving in dollars reflects a specific commitment to this currency, such as buying an asset or using it as a store of value to transfer wealth from the present to the future.

“Instead of buying a house, I prefer to have it in the bank as a financial instrument in dollars. If I later want to buy an asset in dollars, it is simply much easier,” he exemplified.

Although he clarified that not everyone has the financial means to acquire this habit, he explained that those who are interested should do so with some planning, future commitment, or an investment in assets.

At the national level, opening a savings account in this currency is possible at most local banks, and they usually require a minimum opening deposit to avoid low-balance fees.

It is advisable to establish how much money will be allocated from income on a regular basis, review the costs of currency conversions, identify which accounts incur maintenance costs or withdrawal fees, and, if the bank allows it, set up automatic transfers from the main account.

If you want to exchange your pesos for dollars, Martinez suggests looking for an exchange agent, as they usually offer lower exchange rates than banks.

“What you have to take care of is the cost of point 20 (0.20 dollars) because if you have a (savings account in dollars) in your same bank, transferring from your own account in pesos to dollars does not charge you point 20,” he recommended.