Money Management in DR

cobraboy

cobraboy

Pro-Bono Demolition Hobbyist
Jul 24, 2004
40,964
936
113
As someone who is considering semi-retirement in DR, possibly maintaing a home there and in the states, I don't do anything without research. Knowledge is power, and this site is a treasure trove of information.

One important issue to me is banking/money management.

I recognize that banking in the DR is not like in the states. I also realize the potential hazards associated with a wildly fluctuating local currency vs. the dollar. I understand there is some insecurity regarding the solvency of the banks.

I would be interested to hear how some ex-pats and part-time residents manage their cash needs living in the DR. I have good brokerage (ML) and banking (Wachovia) relationships in the states. By cash needs, I mean getting money into and out of the DR safely, keeping some there for short-term requirements, etc. I am interested in opinions of the various banks in the country re: solvency, honesty, ease of transactions, low fees, availability, etc.

I project my monetary needs for living expenses after purchasing transportation and living quarters as around $2500 a month.

Thanks for the input.
 
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Axelar

New member
Jul 28, 2004
19
0
0
Maybe Canadian Banks

I'm in similar circumstances. Some I have spoken to have suggested looking into Canadian banks that have branches in DR. The rationale behind this is safety of your funds, of course. The rates may not be as good, but you'll be able to sleep at night.

If you acquire any worthy information regarding brokerages houses, pass it on.
 
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ricktoronto

Grande Pollo en Boca Chica
Jan 9, 2002
4,837
0
0
Well, Not Really

Axelar said:
I'm in similar circumstances. Some I have spoken to have suggested looking into Canadian banks that have branches in DR. The rationale behind this is safety of your funds, of course. The rates may not be as good, but you'll be able to sleep at night.

If you acquire any worthy information regarding brokerages houses, pass it on.
Click to expand...

Sure, ask the Scotia Quilmes customers in Argentina how durable that ownership link was. The governnment revalued the peso, the market tanked, Scotia wrote off $450 Million and abandonded the bank and left.

The subsidiaries of the US and Canada banks are not branches , are subject to the same risks as a local bank and are as expendable as Quilmes was.

Your life savings belong in a more stable country and not in pesos. A transactional account for a monthly deposit is fine and limits the risk of loss, since I'd take the $2500 and withdraw it in US$ as soon as it arrived.

If they offer 9% US deposits in a global 2% market you can see they are doing the same thing as a local bank.

Or take out money using an ATM card.
 
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GringoCArlos

Retired Ussername
Jan 9, 2002
1,416
40
0
Who on earth needs a bank in the DR?? WHY???

All you need is a good relationship with 2 casas de cambio. By that, I mean where you can go and cash a check with them, and get pesos as needed. Keep your bank and your brokerage in the US, or in Canada, or in the EU, and if they are really good, you can do what you need online. Cash a check here when you need money. By having two relationships, you can take advantage of the better tasa whenever you need to cash a check.

If you want a safe place to keep spare pesos, buy a safe and install it in your home. Forget the banks here, unless you plan on being so bored that you are willing to go and sit in a lobby for people-watching while you wait your turn.
 
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