??Coralito?? is coming?

Englishman

New member
Nov 5, 2003
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Hi survivors,
I have an interesting story to tell you, something which happened to me on thursday.
I stepped into BHD, heading to my safety box with an employee that I know since a long time.
He was smiling and talking as usual but...when we were inside the safety box room, and we were alone, he told me that is better to withdraw my dollars from my account and put them into the safety box because there are strong rumors that Coralito could happen very soon...
Well, I followed his suggestion and shared this experience with you.
 

XanaduRanch

*** Sin Bin ***
Sep 15, 2002
2,493
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See Argentina

The government is goingto seize all dollar accounts and involuntarily convert them into pesos. This allows the government to use the hard currencies appropriated to pay international debts while exchanging them for pretty much worthless local currency. Lots of variations on the theme possible here but that is the general idea.

Tom (aka XR)
 

PJT

Silver
Jan 8, 2002
3,562
298
83
I have not heard of the term. I sway to the same thoughts as XR it is the government's seizure of dollar accounts.

An acquaintance of mine, the owner of a private business, relates it is getting harder, if not downright impossible to access dollar accounts in the country. He says the banks are requiring advance notice and are limiting the amount of dollar funds being withdrawn.

Also, Englishman be aware your BHD friend may know where your dollars are now. They may be safer out of the country.

Regards, PJT
 

XanaduRanch

*** Sin Bin ***
Sep 15, 2002
2,493
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PJT said:
An acquaintance of mine, the owner of a private business, relates it is getting harder, if not downright impossible to access dollar accounts in the country. He says the banks are requiring advance notice and are limiting the amount of dollar funds being withdrawn.
I think this is true. And if so, the 'coralito' has already begun.In fact it's been underway forsometime now.

Tom (aka XR)
 

Gringo

Bronze
Jan 1, 2002
1,314
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Englishman said:
Hi survivors,
I have an interesting story to tell you, something which happened to me on thursday.
I stepped into BHD, heading to my safety box with an employee that I know since a long time.
He was smiling and talking as usual but...when we were inside the safety box room, and we were alone, he told me that is better to withdraw my dollars from my account and put them into the safety box because there are strong rumors that Coralito could happen very soon...
Well, I followed his suggestion and shared this experience with you.

How safe are your safety deposit box's if the sh.. hits the fan big time?
 

HAPPYDUDE

New member
Jan 16, 2004
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SO IF I NEED TO DO ANY BANKING IN THE FUTURE, ANY SUGGESTIONS AS TO ONLINE BANKING. WHO HAS A GOOD RECORD, IE CITIBANK OR CHASE,ECT. I SEE I'LL HAVE TO KEEP MY MONEY IN THE US OR PORTO RICO???? WHAT DO YOU THINK......?THANKS :squareeye :squareeye
 

arturo

Bronze
Mar 14, 2002
1,336
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Hasn't anyone else noticed this for the past 3 to 6 months??

This has been going on since at least last autumn. You see more and more advertising and promotion for dollar accounts that are "safe" and "convenient." At the same time, everyone I know with dollar accounts tell me how it is increasingly difficult to withdraw dollars. The requests are met with offers of pesos, checks in pesos or dollars, or installments on withdrawal requests, i.e. US$100/week of the US$1,000 withdrawal request.

Decide for yourself how much risk you can tolerate. For me, there are so many US FDIC insured, European, Canadian, or Panamanian, etc options for dollar savings, money market, and other accounts that are far more attractive than the increasingly risky local options that it makes no sense to be begging possible unscrupulous bankers to give you your money when you ask for it. You may save some ATM or check cashing fees but there is a real possiblity that it would be penny wise and pound foolish.

BE CAREFUL!
 

philly

New member
Feb 14, 2003
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I haven't had any problem accessing my dollar accounts at BanRes and i did recently close a dollar account with them...other then the normal inquiry of 'why i was closing the account' the process seemed pretty normal...about a 3 weeks ago I took 17K out in US and it went through without a hitch....so I am not sure if anyone else is having problems...

I do not however mean to say that I have any confidence in the future of the DR banking system! and wouldn't be very surprised if the 'coralito' happened like in argentina...and at this point I would not keep many dollars deposited in the DR ...

buyer be ware
 

poquito_loco

New member
Jan 26, 2004
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prestige-hosting.com
hmmmmmmmmmm

I think I wouldn't be able to sleep knowing my dollars were in a box that another person knew they were in. Especially one person that has access to the box. But that's just me. There is Netbank.com I have used and trusted for years.


Best of luck! PL
 

Englishman

New member
Nov 5, 2003
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No, I have no worries about somebody else knowing or guessing...you know how a safety box works? the employee leave you alone in the room, leaving his key in the safety box door, you put your key and grab your box, and put it back when you are done. He can only guess.
But it's not only this. I have this box since 2 years, stored with documents, cash, jewelry and so on, and always found everything.
Furthermore...all my Dominicans friends are doing the same, at least those who owns a safety box and are afraid about those rumors...on sunday one of them asked me for some space in mine.
Well, at the end I did it and I feel much better now.
 

Chirimoya

Well-known member
Dec 9, 2002
17,850
982
113
So much for all the hype

I closed my Citibank US$ account today. They gave me my money in dollars on the spot.

I changed a dollar cheque at a cambio too, and they gave me the money in dollars.

I had the impression that there were no dollars available, or is it only when people are seeking large sums? Or maybe they liked my sweet smile...

Chiri
 

roca

New member
Jun 23, 2003
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Some of my sources with access to government tell me that 2 things are currently being studied:
1. Corralito, which may or may not also include pesos
2. Stop interest payments on cd's at the Central Bank

Take your pick
 

gmiller261

New member
Dec 29, 2002
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The numbers do not support the doom and gloom.

Argentina DR
Population 39 MM 9 MM
Democracy returned in 1983 November 1966
GDP $403.8 billion (2002 est.) $53.78 billion (2002 est.)
GDP - real growth rate -10.9% (2002 est.) 4.1% (2002 est.)
Inflation rate 41% (2002, yearend) 5.3% (2002 est.)
Unemployment 21.5% (2002 est.) 14.5% (2002 est.)
Budget revenues: $44 billion revenues: $2.9 billion
expenditures: $48 billion expenditures: $3.2 billion
Imports - partners Brazil 42%, US 12.8%, US 51.5%, Venezuela 9.6%,
Germany 4.4% (2002) Mexico 5.1%, Spain 4% (2002)
Exports - partners Brazil 23.6%, US 10.9%, Chile 9.7%, US 85%, Canada 1.6%,
Spain 4.3% (2002) UK 1.6% (2002)
Debt - external $155 billion (2001 est.) $4.8 billion (2002 est.)
Electricity - consumption 92.12 billion kWh (2001) 8.543 billion kWh (2001)
 

Adrian Bye

Bronze
Jul 7, 2002
2,077
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..and the statistics are 2 years out of date. Inflation last year here was 40%

btw, I was joking about changing into Haitian money. I thought it was pretty funny, but maybe people took me seriously?

Who knows, its probably more stable than the DR peso right now!
 

Seachange

Member
Jan 13, 2004
222
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www.Banker-Trust.com
CB Certificates

I heard today that the CB stopped redeeming certificates leaving clients the only choice of automatically renewing their certificates for 30 day periods, indefinitely. Can anyone confirm this?
 

Seachange

Member
Jan 13, 2004
222
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www.Banker-Trust.com
roca said:
Some of my sources with access to government tell me that 2 things are currently being studied:
1. Corralito, which may or may not also include pesos
2. Stop interest payments on cd's at the Central Bank

Take your pick

What's to study? Either choice would collaspe the entire banking system. If such moves were taken, there would be a run on ALL banks.