Currently, sending a money transfer to the region costs from $35 to $70 plus VAT, but with the new system, operations made from El Salvador can be originated at any time of the day and any day of the year and will be settled according to the schedules of the rest of the central banks in the region, with a maximum cost of $1.00 per operation.

Today, we put at the disposal of salvadoran families and entrepreneurs who make foreign trade in our main regional trading partner, in their hands, high-level digital financial services, provided by the Banco Central de Reserva", said Douglas Rodriguez, head of the BCR.

The countries where the service will be applied are: Guatemala, Honduras, Nicaragua, Costa Rica and Dominican Republic. The service has the participation of 79 institutions, among which are the 6 central banks of the region, as well as 73 financial institutions, of which 22 are salvadoran.

"This innovative system is the most robust in the region...We intend to strengthen foreign trade, the securities market and favor salvadoran families", said Rodríguez, president of the BCR. 

The implementation of this system also aims to streamline the movement of money across Central American borders, since El Salvador's exports to its neighbors represent 46% of the total amount that leaves the country.

According to authorities, since 2021, the year in which US $20 million was invested to update the money transfer system and Transfer365 was launched, Salvadoran bank users have saved a total of US $38.9 million in bank transfers.

"The pandemic taught us a lesson, we had to innovate. So we began a long road to change the country's history in the foreign exchange system and the BCR to have direct contact with the population", said the president of the BCR.

Translated by: A.M