Salvadorans sent more than $120 million to Central America and the Dominican Republic in the first eight months of 2024, according to the Secretariat of the Central American Monetary Council (Secmca). The transactions were made through the Payment Interconnection System (SIPA), which was established by the region’s central banks in 2011 with the participation of various financial institutions.
Between January 1 and August 30, 2024, more than $205.8 million were transferred throughout the region. Salvadorans accounted for 58.3% of the total amount sent but received only 11.1% of the region’s transactions.
Guatemala was the primary recipient, receiving 48.3% of the $120 million sent by Salvadorans. Nicaragua followed with $36.7 million, representing 30.6% of the Salvadoran transfers. Other destinations included Honduras (19.3%), Costa Rica (0.9%), and the Dominican Republic (0.7%).
The Salvadoran money transfers through SIPA saw a staggering 255% increase compared to the first eight months of 2023, when $33.8 million were transferred. Regionally, there was a 99.7% increase, with $102.7 million more sent from all of Central America.
In contrast, El Salvador received only $22.8 million from the region through SIPA. Most of the inflows came from Honduras (55.7%), Guatemala (39.9%), and Costa Rica (2.9%), while transfers from the Dominican Republic and Nicaragua accounted for less than 2%.
Odalis Marte, Executive Secretary of Secmca, confirmed the increase in money transfers via SIPA this month, highlighting the platform’s speed, low cost, and security. In El Salvador, SIPA transactions cost a maximum of $1 and can be made between 9:00 a.m. and 3:00 p.m. in Central America, and 11:00 a.m. to 5:00 p.m. in the Dominican Republic.