It's an international mutual fund. I'm not looking for unrealistic growth, but 8% overall would be nice if a DR Cert could do that.
You are earning 6% and would consider a DR certificate for 8%.
So for 2% you would take on currency rate devaluation risk in an emerging market currency? Even beyond that, if you needed to convert those pesos back to dollars at any point.....kiss that 2% yield you thought you got....goodbye.
Unless you can find bank certificates yielding double digits per annum...it is not a good/intelligent move.
Dominicans that can....have investment accounts outside the country and out of the risk the peso/government currently presents.
There has only been one period in the last 15 years when it would have been a good investment.....not a wise one, or even a prudent one....but a good one....and that was right before the DR was on the verge of financial collapse....and the IMF rescued the country and its currency. If you had bought pesos at 55:1 and held until the rescue took hold.....you would have done well.
Respectfully,
Playacaribe2