Dollars investment

fido

New member
Jun 18, 2015
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Hiya,

So does anyone know of a good way to invest some dollars and get some decent returns while living here? I am not looking for super-duper-mega return rates, but something decent. For example, the highest rate I have been quoted from a local bank over here for a 100K investment in a CD is 3% yearly and I find that to be just on the low side. I am willing to put the money aside for longer if offered a better (say 5%-6%) rate.

So any good advice ? Please, only reliable sources, if possible. By the way, I have no overseas account and the investment will be made by a Dominican citizen, not a foreigner.

Thanks a lot for any suggestion
 

TropicalPaul

Bronze
Sep 3, 2013
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One piece of advice is to invest your own money yourself. I get the impression that you're intending giving the money to a Dominican citizen to invest on your behalf, which means they have complete control of the money. Even if you know them really well (and especially if you are in a relationship with them), this is very high risk and you may find the money disappears at some point.

Regarding investment returns, the dollar returns are as boring as everywhere else on the planet. You can get good returns in pesos, but you have to understand that the peso devalues each year against the dollar, so in dollar terms these don't work out to be good. The best returns are usually offered on government stock in pesos and banks will be able to give you a range of investment terms and returns available.
 

fido

New member
Jun 18, 2015
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Hi Paul, thanks for the advice regarding investing the money myself. However, what I meant to say is that the money belongs to a Dominican national, not a foreigner and he will be the one making the investment (I just found it relevant to say since he has no accounts/savings overseas, they are all currently on local banks savings account).

I agree regarding the pesos vs dollars returns, reason I wanted to know what would be the best way to invest the dollars as CD returns are just way too low.

Thanks
 

Kipling333

Bronze
Jan 12, 2010
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I have just gone through the process of trying to obtain a good interest rate for a dollar investment or alternatively a peso investment with a bank ..a certificate of deposit or special long term savings account.. The rate that you have been offered of 3 % for a dollar investment is in line with what I was offered . I tried to obtain a certificate of deposit at just over 9% for 7 years but the bank refused to issue this to a Dominican that was self employed . I finally settled for a special peso investment with interest of 6.0 % over 7 years . But I did try 5 different banks and some would not offer any investment over 5 years and others had much lower rates ,It seems that our economy is relatively fluid or liquid ,call it as you wish, at present which is a nice thing .
 

windeguy

Platinum
Jul 10, 2004
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If you get more than 3% interest for US dollar accounts then the deal is probably a pyramid scheme. There are some infamous stories on DR1 where posters recommended such schemes and people were badly burned. ANOECA, if I recall the proper name.
 

SKY

Gold
Apr 11, 2004
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CEPM is a solid company. But it is for 10 years. I assume you can't get it for less than 10 years.
 

southern

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Dec 13, 2016
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Why don't you advise your friend to invest in U.S securities. It's legal,all he has to do is register with the man. (IRS)
 

cavok

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Jun 16, 2014
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CEPM is a solid company. But it is for 10 years. I assume you can't get it for less than 10 years.

In a recent email I received from BHD, they had some CEPM bonds that were available on the secondary market that only had 3 years remaining until maturity.
 

melphis

Living my Dream
Apr 18, 2013
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If you convert it to pesos you should get between 8.5 to 9.5% depending on the bank on a 270 day CD. Do not trust anyone to do it for you unless you can afford a 100k loss and keep it in your name.
 

Syork

New member
Sep 5, 2004
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Dollar investments

In a recent email I received from BHD, they had some CEPM bonds that were available on the secondary market that only had 3 years remaining until maturity.
You can invest via BHD Valores. We have done so for several years and it has worked without a problem. They pay the interest into your dollar account and it has always been deposited on the exact day due. You will need a dollar account in the BHD bank. Pesos too if you have Peso investments. When we wanted to cash out the bonds, again it was done without a problem. Highly recommend!
 

southern

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Dec 13, 2016
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Check out Warren Buffets 10 favorite dividend paying stocks. Included are IBM and Wells Fargo. 20% of all Warren Buffets wealth is in Wells Fargo, that will tell you something. No money manager will ever tell you to invest in Dominican Pesos, Ever.
 

fido

New member
Jun 18, 2015
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Thanks for the advice, however, if you use this website

https://www.rexifinanzas.com/resultados/certificados-de-deposito/#/moneda=US$&monto=100,000&plazo=360&interest=false&pagina=1

You will see there is a reputable bank offering %3.05 of interest yearly for a CD in dollars for 100K

JjGYrrYbTRWf6jgrcMEotg.png


Of course, not a savings account but rather a CD
 

cavok

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Jun 16, 2014
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You can invest via BHD Valores. We have done so for several years and it has worked without a problem. They pay the interest into your dollar account and it has always been deposited on the exact day due. You will need a dollar account in the BHD bank. Pesos too if you have Peso investments. When we wanted to cash out the bonds, again it was done without a problem. Highly recommend!

I'm surprised at how few people seem to know about this. Through BHD's commercial division, BHD Valores, you can purchase Dominican government bonds issued in US Dollars through the Ministerio de Hacienda - which is the Dominican equivalent of the US Treasury. These bonds are traded on the secondary market here(Puesto de Bolsa, which is like the US stock exchange)and can be sold at any time.

You can also purchase Dominican bonds issued in pesos through BHD Valores. The last ones I bought were for 15.9% that I had for 5 years. Factoring in the devaluation of the peso, my net return was around 10%. Very nice. Current government bonds in pesos are at around 11%.

When buying bonds in pesos you have to keep in mind the risk of the devaluation of the peso - that's why they are currently paying 11%. For the past 11 years that I've been here that has been at about a rate of 3.5% per year. Past performance is no guarantee of future returns.
 

windeguy

Platinum
Jul 10, 2004
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I'm surprised at how few people seem to know about this. Through BHD's commercial division, BHD Valores, you can purchase Dominican government bonds issued in US Dollars through the Ministerio de Hacienda - which is the Dominican equivalent of the US Treasury. These bonds are traded on the secondary market here(Puesto de Bolsa, which is like the US stock exchange)and can be sold at any time.

You can also purchase Dominican bonds issued in pesos through BHD Valores. The last ones I bought were for 15.9% that I had for 5 years. Factoring in the devaluation of the peso, my net return was around 10%. Very nice. Current government bonds in pesos are at around 11%.

When buying bonds in pesos you have to keep in mind the risk of the devaluation of the peso - that's why they are currently paying 11%. For the past 11 years that I've been here that has been at about a rate of 3.5% per year. Past performance is no guarantee of future returns.

Of course the interest is higher for the CD's in peso accounts because there is potentially great volatility in the FOREX rate of the peso. Sometimes you pick a time frame where you do well. The original question was about US Dollar investments and not peso accounts. For USD, I would be surprised if there is anything near what DR peso accounts would pay. Someone posted about 3% which I could believe is a fairly "safe" investment that remains in USD.
 

cavok

Silver
Jun 16, 2014
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Thanks for the advice, however, if you use this website

https://www.rexifinanzas.com/resultados/certificados-de-deposito/#/moneda=US$&monto=100,000&plazo=360&interest=false&pagina=1

You will see there is a reputable bank offering %3.05 of interest yearly for a CD in dollars for 100K

JjGYrrYbTRWf6jgrcMEotg.png


Of course, not a savings account but rather a CD



Banco Promerica - a reputable bank? You'd have to be totally nuts to plunk down $100K in a CD with a little known Dominican bank like this for measly 3.05%!!!
 

windeguy

Platinum
Jul 10, 2004
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Banco Promerica - a reputable bank? You'd have to be totally nuts to plunk down $100K in a CD with a little known Dominican bank like this for measly 3.05%!!!

Good point. Check out at least Banreservas and Banco Popular.
 

fido

New member
Jun 18, 2015
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Good point. Check out at least Banreservas and Banco Popular.
While I understand that no other bank other than the three "too big to fail" colossus (BR, BPD and BHD) share the same reputation as other smaller banks, this doesn't mean they are not reputable. Some of the smaller banks (say, ADOPEM for example which doesn't even have an internet banking website) are even qualified by the same firm that qualifies these three (fitch ratings) and have obtained good risk ratings overall.

Also, usually banks as big as those three tend to have a higher demand in the market and thus offer less benefits because of that.