Disadvantages to having Euro or Dollar account?

prospero

New member
Oct 6, 2009
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Hello all,

I was talking to a friend of mine in Santo Domingo about opening up an account in Euros with Banco Popular, and he turned around and almost crucified me for the idea. He said that Euro and Dollar accounts are not safe and that EVERYONE he knows has dissuaded him from opening an account in a foreign currency here. He couldn't, however, tell me why exactly it was such a horrible idea. I'm wondering if there's really anything to be afraid of as far as security of one's funds would go.

Do any of you have Dollar or Euro accounts? Ever run into any problems?


Thanks
 
Nov 25, 2008
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Well if he cant give you a reason why then he does not really know what he's talking about; I guess he's the type of person who still hides his money in the mattress
 

kimbjorkland

New member
Apr 6, 2011
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I too have heard this from my vecino, but haven't received an adequate suggestion as to 'why'?

My only guess is, and it's a total guess, that foreign currency deposits are not guaranteed by any form of depositor insurance scheme. But I'm not sure if the latter even exists here...
 
Jan 9, 2004
10,898
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Hello all,

I was talking to a friend of mine in Santo Domingo about opening up an account in Euros with Banco Popular, and he turned around and almost crucified me for the idea. He said that Euro and Dollar accounts are not safe and that EVERYONE he knows has dissuaded him from opening an account in a foreign currency here. He couldn't, however, tell me why exactly it was such a horrible idea. I'm wondering if there's really anything to be afraid of as far as security of one's funds would go.

Do any of you have Dollar or Euro accounts? Ever run into any problems?


Thanks


Prospero:

I concur with jorgesarduysosua regarding giving you a reason or reasons why.

That having been said, my guess would be his/her memory of the banking collapse several years ago. During that period Dollars/Euros were scarce, and in many cases you had to make an apointment, or at least call ahead, to see if the bank had enough Dollars/Euros to meet your withdrawal.


Respectfully,
Playacaribe2
 

Criss Colon

Platinum
Jan 2, 2002
21,843
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yahoomail.com
The "EURO" would not be my choice.Too much instability/uncertanty in the "Euro Zone" right now.
The US Dollar was sometimes not available,as stated above,during certain times in the DR.
Some of us,have "put away"(Mattress'?)US dollars to have accesable in any future "Crisis",be it only the DR,or the entire world.
"Cash Machines" here in the DR might not be a source of funds due to "Natural",or "Man Made" crisis,.
CC
 

bochinche

Bronze
Jun 19, 2003
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my take....

at the time of Salvador Jorge Blanco's government, bank accounts in foreign currencies were converted to dominican pesos. many people did not have their savings in "hard currency" anymore.

many people still worry this may happen again and make checks before putting their dollars, etc. in local accounts. somebody i know is convinced his dollars in his BHD account are safe, because he has been told they are secure in Panama. i am sceptical.
 

drstock

Silver
Oct 29, 2010
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I have had a dollar account at Banco Popular for over a year and no problems at all so far. The peso suffers much higher inflation than the dollar, so if your money is in a non-interest account it diminishes in value much quicker in a peso account. However, to counteract that, you should get a much higher rate if you have an interest account in pesos.
 

granca

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Aug 20, 2007
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I have had a US$ account for 5 years with Banco popular and before that with Scotia Bank. I have never had any problems. They pay me interest on it, no withdrawal charges provided i do not make more than three per month.Do not transfer into it more than US$10,000 at a time ( drug suspicions) and i have never had a problem withdrawing up to US$ 2,000 on demand. one tip - don't change it into pesos at the bank, go to Caribe Express, much better exchange rate.
 

pi2

Banned
Oct 12, 2011
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No problems with dollar accounts in DR. Friends have Euro accounts also. In local branches you may wait a day or so to withdraw 10,000 dollars or Euros.

In 15 years never ever heard of someone who has lost money in DR bank. When a bank goes under it has been up to a year for funds to be returned - but to my knowledge they have always returned funds.

pi2
 

LTSteve

Gold
Jul 9, 2010
5,449
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It is not a matter of security. It is a matter of convenience. If you are doing most of your transactions in Pesos than open a peso account or open up one of each.

s
 

waytogo

Moderator - North Coast Forum
Apr 3, 2009
6,407
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Santiago DR
It is not a matter of security. It is a matter of convenience. If you are doing most of your transactions in Pesos than open a peso account or open up one of each. s

Tried to open a peso account at Banco Popular here years ago for my money transfers in Dollars from the states. I had to open a U.S. Dollar account to be able to ACCEPT the dollar transfers.

B in Santiago
 

Fernandez

Bronze
Jan 4, 2002
572
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48
I assume you are referring to the Banks portfolio risk, and by this, not so much the currency held. I know of many holding foreign currency accounts in the Dominican Republic, mostly Dominicans who have done so for years without issue. I think the ultimate question is the Bank in question, and here like in countries accross the globe, due dilligence is required.
 

PeteyPablo

Bronze
Apr 30, 2011
726
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I assume you are referring to the Banks portfolio risk, and by this, not so much the currency held. I know of many holding foreign currency accounts in the Dominican Republic, mostly Dominicans who have done so for years without issue. I think the ultimate question is the Bank in question, and here like in countries accross the globe, due dilligence is required.

In the DR, how does one go about doing due diligence on a bank?