While U.S. Dollars are widely accepted in tourist areas of the Dominican Republic, it is almost always better to pay in Dominican Pesos (DOP) for daily transactions. When you pay in dollars at local shops, "colmados," or for transport, the vendor often uses a highly unfavorable exchange rate (e.g., 50:1 when the official rate is closer to 60:1). Using local currency ensures you pay the actual price and avoids the "tourist tax" hidden in the conversion. However, it is useful to keep some small USD bills ($1s and $5s) for tipping at all-inclusive resorts or for the $10 tourist card fee if not included in your airfare. For the best value, withdraw pesos from a bank ATM (avoiding independent ones in lobbies) and use a credit card with no foreign transaction fees.