&
"The Tourist Watcher"
Guest
To our pop economists, here's a good one. Stephen Hadley and I have been arguing for some time as to the best management of your money in DR, posing the hypothesis that you have $1,000,000 pesos or more(no lesser amounts) disposable for investment in commercial paper or certificates of deposit and assuming that you depend on the interest rates to cover some of your monthly expenses or to subsidize your income.
1)Would you keep your pesos and invest at interest rates of 15% a year, knowing factors such as devaluation, buying power,government regulations, cost of living inflation, etc.
2)Or would you keep it in dollars where the interest rates are at best 5 1/4% to 6% knowing the same factors and other risks.
So that you know, Stephen is of the dollar school. I stick to my pesos, as I believe the dollar is overrated in the present Dominican circumstances.
Give us your analytical opinion. Please, if possible, do not suggest that the money be used for investment in a business, specially with employees, or investment outside the DR(like Wall St.). This is not the argument. It is simply an investment question in DR.
TW
1)Would you keep your pesos and invest at interest rates of 15% a year, knowing factors such as devaluation, buying power,government regulations, cost of living inflation, etc.
2)Or would you keep it in dollars where the interest rates are at best 5 1/4% to 6% knowing the same factors and other risks.
So that you know, Stephen is of the dollar school. I stick to my pesos, as I believe the dollar is overrated in the present Dominican circumstances.
Give us your analytical opinion. Please, if possible, do not suggest that the money be used for investment in a business, specially with employees, or investment outside the DR(like Wall St.). This is not the argument. It is simply an investment question in DR.
TW