- Thread starter arrugala
- Start date
CD RATES IN US DOLLARS IN DR BANKS Who has the highest rate . ?????
Well if the dollar goes up in value by 7% or more against the D.R. peso during that time then you have a gain of 10.65% if you put it back into pesos. But if the dollar goes down against the D.R. peso by 7% during the life of the CD then you have lost 3.35% if you bring it back into pesos at the end of the CD. Hope the dollar ended going up for you.
Oh yes, the peso is on a slow and steady fall against the US dollar with a 6 peso per dollar drop in just the past 4.5 years:
my guess only is the us dollar will be devaluated dramatically so they can pay their debts off cheaper ,and the us thinks this help exports too .I believe china and the us have made a deal to this effect ( since the us owes them tons and now the us won't get away screwing a big player like china .... I hope I am Absolutley WRONG, this will cause big inflation for everyone
A cheaper currency for any country does help exports since its products cost less in foreign countries and it also helps to pay down it foreign debt. As for the US devaluing it's currency only time will tell on that. Since the gold standard was abandoned, it is only "as good as the paper it is printed on" and of course the desire of the rest of the world to have dollars.
Oh yes, the peso is on a slow and steady fall against the US dollar with a 6 peso per dollar drop in just the past 4.5 years:
The probability of a hard devaluation instead of a controlled peg vs the dollar is highly unlikely.
The DR needs to keep the currency as strong as possible- if only to afford dollar purchases of the imports that run the economy IE; petroleum.
You can track peso weakness vs. the price of declining petroleum in a chart overlay.
As the cost of petrol drops, the flexibility on the Peso increases.