The interest at 6% just is paying you for the annual devaluation-so in fact you are making about zero percent interest in USD terms. You can get about 1-2% interest in USD's now.
- Thread starter jimmythegreek
- Start date
It Seems Like The Peso Domincano
The interest at 6% just is paying you for the annual devaluation-so in fact you are making about zero percent interest in USD terms. You can get about 1-2% interest in USD's now.
Went to investigate this-the best you are going to do is a 60 month USD-CD and yields only about 2%+.
That is true,,,when I withdraw it is usually $35K DOP so multiple hits are necessary..no problems there with Scotiabank; providing the currency limit is $10,000 DOP a hit.
interesting article in el caribe today about worrying price of a dollar:
http://www.elcaribe.com.do/2018/05/...ion-por-inusual-aumento-de-la-tasa-del-dolar/
http://www.elcaribe.com.do/2018/05/...ion-por-inusual-aumento-de-la-tasa-del-dolar/
I think the DR peso is holding up reasonably well.
As US interest rates rise, the first currencies to get hit with declining value are the economically weaker emerging markets countries.
The currencies of Argentina, Brazil and Mexico have all come under downward valuation pressure against the dollar lately and will likely continue throughout 2018.
Expect the DR peso to continue to weaken on a slower trajectory than the aforementioned countries.........unless and until the Banco Central starts to raise interest rates in lockstep with US rate increases.....and if they do not raise rates.......50:1 Peso/Dollar this year is quite likely.
Respectfully,
Playacaribe2