Are D.R. banks safe?

donlowe

New member
Sep 24, 2003
4
0
0
I was planning on putting money into a U.S. $ CD with a D.R. bank, as the interest rates are quite high. However, I've seen several comments on the boards indicating that there are real risks in financial dealings here, even including bank transfers. Am I risking my savings by placing them in a D.R. bank?
 

Lurch

New member
Aug 8, 2003
123
0
0
Only place what you can personally afford to lose in any questionable market.

Unfortunately there is not only the question of bank collapse but the more likely future possiblity of the government forcing all banks to convert the local dollar accounts into pesos (example Argentina).

If the accounts are converted by force it shall not matter whether your money is in Banco Popular, Citibank, Scotiabank or anywhere else in the republic. Your money will be converted at whatever exchange rate the government sees fit to provide and there won't be any recourse.

They will do this because they are very quickly running out of hard currency (dollars, euros, yen) reserves. Add in the PPH re-election group and the financial requirements of stealing the 2004 election.

Please note the government has already postponed a recent interest and principle payment for Central Bank bonds.