I am interested in putting about $10,000 USD into a peso account. What would be the best (and safest) bank to do this in the cabarete area ? Also what are the interest rates and do they pay the interest monthly ? Any suggestions for getting a safe 15% return ? Thank you.
- Thread starter Darlene Wheeler
- Start date
banking question
See posts by Chris and Escott in this thread http://www.dr1.com/forums/showthread.php?s=&threadid=26352&highlight=investing
Do not put your money in pesos. Keep it in dollars. Less than a year ago the rate of exchange was about 18 to 1. Now it is 40 to 1. Had you sold your dollars to buy pesos when it was 18 to 1, how much of your $10,000 would you have left.
Do not put your money in pesos. Keep it in dollars. Less than a year ago the rate of exchange was about 18 to 1. Now it is 40 to 1. Had you sold your dollars to buy pesos when it was 18 to 1, how much of your $10,000 would you have left.
If I had bought $ 10,000 USD in pesos now and the rate drops to 18:1 I will double my money, correct ?
Check the count6ries history for RD $'s strengthening against the US $!!! Happened for a short time in 1990 I gather but lasted for just a short time.
For the past year the peso has been devaluing at an alarming rate due to this Government borrowing money all over the place & it will certainly not improve before they are out of power. Governmental decree might last for a month or two, but there is so little confidence in the pseso, NONE in this Governments economic policies, that the pesos would imediately drop again if they DID try to revalue it. How on EARTH, can the government revalue when they have all the loans out anyway?? It would KILL the exportes (& we need them for the US $ flow), it would all but stop the tourist market (by making this country much more expensive to visit) & prices in shops etc would not come down one jot!!
The incoming Government will not be able to make an immediate impact on revaluation either - see above reasons. Look to a possible (& I mean "possible" revaluation in 2005 or 6 at the earliest!!
PLEASE, do yourself a favour & think US $'s, Euros or even ?'s Sterling for investment purposes. If you want to loose money quickly, THEN you can invest in Pesos!! Why do you think we have the run on the US $ at the moment?? ALL the Governmental heads have bought US $'s & are holding them off-shore, only bringing in every 3 months or so to top up their personal incomes!! PM or e-mail me if you want more. - Grahame.
For the past year the peso has been devaluing at an alarming rate due to this Government borrowing money all over the place & it will certainly not improve before they are out of power. Governmental decree might last for a month or two, but there is so little confidence in the pseso, NONE in this Governments economic policies, that the pesos would imediately drop again if they DID try to revalue it. How on EARTH, can the government revalue when they have all the loans out anyway?? It would KILL the exportes (& we need them for the US $ flow), it would all but stop the tourist market (by making this country much more expensive to visit) & prices in shops etc would not come down one jot!!
The incoming Government will not be able to make an immediate impact on revaluation either - see above reasons. Look to a possible (& I mean "possible" revaluation in 2005 or 6 at the earliest!!
PLEASE, do yourself a favour & think US $'s, Euros or even ?'s Sterling for investment purposes. If you want to loose money quickly, THEN you can invest in Pesos!! Why do you think we have the run on the US $ at the moment?? ALL the Governmental heads have bought US $'s & are holding them off-shore, only bringing in every 3 months or so to top up their personal incomes!! PM or e-mail me if you want more. - Grahame.
More than double, but it ain't going to happen. The peso will probably never see under 30:1 again, much less go to 18:1. Putting US$10,000 into a peso-denominated account in a bank in the DR right now is tantamount to throwing your money away.Darlene Wheeler said:
Regards,
Keith
I would sooner bet it will be at 50 to 1 before it goes to 25 to 1.Darlene Wheeler said:
Good luck
Give it to ME!
I will be happy to give you 15% in pesos for $10,000 US since in three or six months I can just go to a cambio and buy the pesos I owe you (with YOUR money) for 1/2 of what you originally thought you had. And then I keep the rest of the US you gave me.
People have to quit with the big-eyed 15% is great vs. US interest rates attitude since people (not just you) completely overlook that the 15% more pesos are worth 40% less due to the devaluation when the deposit is up.
Darlene Wheeler said:
I will be happy to give you 15% in pesos for $10,000 US since in three or six months I can just go to a cambio and buy the pesos I owe you (with YOUR money) for 1/2 of what you originally thought you had. And then I keep the rest of the US you gave me.
People have to quit with the big-eyed 15% is great vs. US interest rates attitude since people (not just you) completely overlook that the 15% more pesos are worth 40% less due to the devaluation when the deposit is up.
Based on?????
What source of intelligence (and on the subject of the peso gaining ground I use the word loosely) do you have to suggest this will happen?
BTW if it drops to 1:1 you'll be rich!! woo-hoo! Buy that Mercedes!!!
If they do what Mexico did and lop off a zero at some point it hasn't gained value they change the currency to be worth 10X the original amount. But it isn't worth more in a real hard currency.
Darlene Wheeler said:
What source of intelligence (and on the subject of the peso gaining ground I use the word loosely) do you have to suggest this will happen?
BTW if it drops to 1:1 you'll be rich!! woo-hoo! Buy that Mercedes!!!
If they do what Mexico did and lop off a zero at some point it hasn't gained value they change the currency to be worth 10X the original amount. But it isn't worth more in a real hard currency.
Even if I had 100% confidence that the newly elected leader of the DR was an economic whiz and would do everything right and had all of the backing he needed, I wouldn't count on the peso going down from where it is today anytime in the near future. I would think that it might stabilize at current levels if that were to happen- not that it even could or would happen.
Not by investing like this, though
You want to make a small fortune in the DR Peso?
Start with a large fortune in US and convert it to the peso.
Terrible strategy.
Darlene Wheeler said:
You want to make a small fortune in the DR Peso?
Start with a large fortune in US and convert it to the peso.
Terrible strategy.
This thread was posted by my boyfriend under my name. I don't feel that it was a stupid question that he asked. I appreciate the info except I could do without the snide remarks of some. He nor I wish to get rich quick in the DR. He thought it would be a good idea to set up a Paso account for pocket change when in the DR. I have heard people say that they opened an account in US dollars, & when they went to withdraw they would only give them Pasos.
I appreciate the advice I have received in the past & hope to meet some of you soon .
I appreciate the advice I have received in the past & hope to meet some of you soon .
Only stupid thing I noticed is when it was asked "if the peso goes to 18 I will double my money, right?" Had that been left out you would have received better info. Hell after reading that I couldnt even see straight let alone answer!
We've Heard that Before
Sort of like when you call the STD hotline and ask them questions about your "friends" symptoms, right? Snicker, snicker.
P.S. Don't deposit in Pasos either whatever they are. In El Paso TX, a FDIC insured bank is safe though.
But seriously folks, If you are visiting the DR unless you are there for a terribly long time just bring US$ in travelers checks if you have to and exchange small amounts daily to not lose on the day to day drops in the peso ( or Paso) value.
For longer periods, you CAN use an ATM card, there have been mixed results on access, exchange rates, and getting your card back. That way your deposits are in a safe , liquid country.
Also, you can preload a Visa card with a credit balance and go to a bank for cash advances , though it can be time consuming (lineups and ID etc.).
Without incurring a debit balance you don't pay interest. You might have to pay cash advance fees, which could be lower than ATM fees.
Darlene Wheeler said:
Sort of like when you call the STD hotline and ask them questions about your "friends" symptoms, right? Snicker, snicker.
P.S. Don't deposit in Pasos either whatever they are. In El Paso TX, a FDIC insured bank is safe though.
But seriously folks, If you are visiting the DR unless you are there for a terribly long time just bring US$ in travelers checks if you have to and exchange small amounts daily to not lose on the day to day drops in the peso ( or Paso) value.
For longer periods, you CAN use an ATM card, there have been mixed results on access, exchange rates, and getting your card back. That way your deposits are in a safe , liquid country.
Also, you can preload a Visa card with a credit balance and go to a bank for cash advances , though it can be time consuming (lineups and ID etc.).
Without incurring a debit balance you don't pay interest. You might have to pay cash advance fees, which could be lower than ATM fees.
My boyfried did post the thread, not I . Sorry Peso, not Paso, had a glass of wine.
That must have been you,not I that wrote the STD hoteline!!
Darlene
That must have been you,not I that wrote the STD hoteline!!
Darlene
yeah, It Was Me, Right !( nudge nudge, wink wink)
It was me calling about my "friend" (Rhymes with Arlene) Your secret is safe with me. Take ALL the pills though, remember?
Anyway the other info will hopefully be of help and keep your good US$ out of peso accounts when you visit.
Darlene Wheeler said:
It was me calling about my "friend" (Rhymes with Arlene) Your secret is safe with me. Take ALL the pills though, remember?
Anyway the other info will hopefully be of help and keep your good US$ out of peso accounts when you visit.
I have been reading all you so called "financial wizards" ideas and responses for some time now. I remember reading several months ago that it was a good idea to open a peso account for the high interest returns. Funny that all you fellow NYers need to bring your measily dollars to a third world country to feel rich
Really? Where?
It's been pretty clear for more than few months that the risk of peso deposits are two-fold - one the banks may not be stable or liquid and two, that the return in percent even though they look good probably will fail to cover the devaluation of the peso relative to US$ deposits at a lower rate, even 0%.
You seem to have an axe to grind with no explanation. Why is that?
melvinfrom NYC said:
It's been pretty clear for more than few months that the risk of peso deposits are two-fold - one the banks may not be stable or liquid and two, that the return in percent even though they look good probably will fail to cover the devaluation of the peso relative to US$ deposits at a lower rate, even 0%.
You seem to have an axe to grind with no explanation. Why is that?
US $1 equalled RD $38.85 three weeks ago.
Today it is RD $41.20. % rate drop in value against US $ = 5.71%.
IN JUST 3 WEEKS!!!!
Q. E. D. !!!!! - Grahame.
By the way Melvin, some of us are NOT from NYC & we have lived here for in excess of 11 years - just to keep the record straight. I certainly do not have to use US $'s to feel rich here ... I just have to LIVE here to feel rich - the money, investments etc (in US $s, Euros, RD $'s & even the old ? Sterling, just make it that much easier for me!! - GB.
Today it is RD $41.20. % rate drop in value against US $ = 5.71%.
IN JUST 3 WEEKS!!!!
Q. E. D. !!!!! - Grahame.
By the way Melvin, some of us are NOT from NYC & we have lived here for in excess of 11 years - just to keep the record straight. I certainly do not have to use US $'s to feel rich here ... I just have to LIVE here to feel rich - the money, investments etc (in US $s, Euros, RD $'s & even the old ? Sterling, just make it that much easier for me!! - GB.