What Currency Is Used in the Dominican Republic?

The Dominican Republic is a Caribbean nation known for its diverse landscapes and vibrant culture. For those planning to visit or engage in commerce, understanding its official currency is essential. The local monetary system facilitates a structured approach to financial transactions for both residents and international visitors. This guide provides clarity on the Dominican Peso and its practical application.

The Dominican Peso

The official currency of the Dominican Republic is the Dominican Peso. Its symbol is commonly represented as RD$, though a simple ‘$’ may also be seen. The international currency code is DOP. Each Peso is subdivided into 100 centavos, which are conceptually similar to cents in other currencies. However, these coins are rarely encountered in daily transactions due to their minimal purchasing power. Banknotes are circulated in denominations of 50, 100, 200, 500, 1,000, and 2,000 pesos. Coins are available in 1, 5, 10, and 25 peso denominations.

Exchanging and Using Currency

Dominican Pesos can be obtained through authorized banks, official exchange houses (“casas de cambio”), and Automated Teller Machines (ATMs). ATMs are widely available in urban and tourist areas, offering a convenient way to withdraw pesos directly. It is advisable to avoid exchanging currency at airports or hotels, as they often provide less favorable rates.

While the U.S. Dollar (USD) is often accepted in major tourist hubs, resorts, and establishments catering to international visitors, using the local currency typically results in more advantageous rates for everyday purchases. Credit and debit cards, primarily Visa and Mastercard, are widely accepted in larger establishments, including hotels, restaurants, and supermarkets. Inform your bank of your travel plans to prevent service interruptions. Some merchants may apply a surcharge, sometimes up to 18%, on credit card transactions due to local sales tax policies.

Most ATMs in the Dominican Republic impose a fee, typically ranging from 200 to 300 pesos per transaction, in addition to any fees charged by your own bank. Withdrawal limits can vary, usually falling between 5,000 and 10,000 pesos, with some machines allowing higher amounts. For better rates and security, use ATMs located at established bank branches. When prompted at an ATM or point-of-sale terminal, always opt to be charged in Dominican Pesos rather than your home currency to avoid unfavorable dynamic currency conversion rates.

Practical Tips for Transactions

Check current exchange rates from reliable sources like authorized banks or reputable online platforms, as rates can fluctuate daily. Carrying smaller peso denominations (100, 200, and 500 peso notes) is convenient for small purchases and local vendors. This helps in receiving accurate change and streamlines transactions.

Be aware that prices for tourists may sometimes be presented differently, and paying in U.S. dollars might result in a less favorable exchange rate than using local currency. Always count your change to ensure accuracy. Prioritize security by avoiding informal street money changers, who pose risks of fraud or counterfeit bills.

Tipping is a common and often anticipated practice. Many restaurants include a 10% service charge on the bill, sometimes indicated as “propina incluido” or “servis.” Even with this charge, it is customary to provide an additional 5-10% tip for satisfactory service, preferably in cash directly to the service provider. Cash tips are generally preferred, and small U.S. dollar bills ($1 or $5) are widely accepted and appreciated, though U.S. coins are not practical for tipping.