DR Banks

Escott said:

Someone posted that they withdrew 1500 US dollars from a bank in the Dominican Republic. They then said that they posted this because of all the nay sayers on the board I guess inferring that Banks here were safe.

I think that it was Banco Popular which btw had just had some sort of bailout not 6 months ago following Banco Mercantile, Banco Credito and of course the Baniter disaster which is still in progress.

I feel that the banks are NOT stable here and of course when I made light of the guy he got a little carried away and the thread was closed. I would still like some discussion on the subject and even from this silly guy whether the banks in the DR are a safe bet for people to put US dollars and why.

Thanks,
Scott

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Yes Scott, I wondered why that thread had got "Closed". It seemed to me that the person concerned was making a valid point about your NORMAL responses (rightly or wrongly) & his thread was promptly closed when he had some harsh words to say against YOU. Pity this, as Robert is giving some peculiar messeges to the DR1 contributors as to what the relationship is between you two - any "Contra Scott" stuff seems to get a fast rebuttal from him or gets closed/deleted.

I am amused at your comment as to GMiller being 'Silly'. My understanding as to how he puts a point across - considered & forthright - indicates that he is anything OTHER than 'SILLY'. I would suggest he has quite a bit of intelligence. The fact that he 'assumed' people would understand his original post was written to indicate "US $ were available through banks still" & then had to EXPLAIN that to others, indicates that he has a GOOD brain - which means he is NOT as silly as you indicate!!

Perhaps if you toned down your sarcasm (leave that to the boss of sarcasm. CCCCcccc) & GMiller explains what to intelligent people doesn't really NEED explaining, then the two of you might get along quite well together!! We have known each other a long time & I know how to put up with your jibes, newcomers to the board do not have this experience & need to be weaned (or should that be 'Weenied'??) on to you over a period of time. Heck, for an American you even make sense some times!!!! - Grahame.

Are you trying to do it again Escott?

If you want a substantive discussion of the safety or otherwise of DR banks, then say so. However, as you already have your own opinion, I wondered why you opened this up again. Was it merely to take a shot at gmiller again?
The use of the word "silly" was unnecessary & perjorative. Such repetitious shot taking is becoming tiresome in the extreme. There now, that may or may not lead to closure! Wait a minute....Escott started this thread!

Favoritism

It IS funny how some threads stay open (depending on who started them) and others close rapidly.

I don't know a lot of people on here yet, but I have seen some "favorites" being able to keep a thread going on when others are shut down right away.

BushBaby said:

Yes Scott, I wondered why that thread had got "Closed". It seemed to me that the person concerned was making a valid point about your NORMAL responses (rightly or wrongly) & his thread was promptly closed when he had some harsh words to say against YOU. Pity this, as Robert is giving some peculiar messeges to the DR1 contributors as to what the relationship is between you two - any "Contra Scott" stuff seems to get a fast rebuttal from him or gets closed/deleted.

I am amused at your comment as to GMiller being 'Silly'. My understanding as to how he puts a point across - considered & forthright - indicates that he is anything OTHER than 'SILLY'. I would suggest he has quite a bit of intelligence. The fact that he 'assumed' people would understand his original post was written to indicate "US $ were available through banks still" & then had to EXPLAIN that to others, indicates that he has a GOOD brain - which means he is NOT as silly as you indicate!!

Perhaps if you toned down your sarcasm (leave that to the boss of sarcasm. CCCCcccc) & GMiller explains what to intelligent people doesn't really NEED explaining, then the two of you might get along quite well together!! We have known each other a long time & I know how to put up with your jibes, newcomers to the board do not have this experience & need to be weaned (or should that be 'Weenied'??) on to you over a period of time. Heck, for an American you even make sense some times!!!! - Grahame.

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Yes ! I do agree with you ! As far as newcomers are concerned to this forum ! It does make me feel imtimated ! I didn't even know who the owner was of this forum, until I was warned to watch my step about insulting him ! At 63 yrs of age, I wasn't expecting to be warned off by anyone , simply for defending the insult handed out by the owner, towards the country of my birth ! However, I would like to know more about the stability or instability about the banks of the D.R. I would prefer to read ALL comments, and then make my own conclusions, as to transfering funds ! I hope my spelling is read-worthy, as it also seems to be open for ridicule on this forum ! I would also like to know "are Escott and Scott one and the same, and the owner ????? Also when you send a private message , do i take it then , that is not the case, it appears on the forum regardless?? Thankyou !

money Us$ Banco Popular

Ok I am flying into Santo Domingo to goto Boca Chica with my roomate who is also from the Dominican, American born but has much family in Boca Chica. We arrive on the 15th of may and I am bringing travelers checks. I am curious as to what to do in the bank. Do they have safety deposit boxes at Banco popular? If so are they safe? The last thing I am going to do after reading this post is deposit any large sums of money there. I would appreciate any advice concerning this matter as well as any additional info concerning Boca Chica. I have been on the internet for several hours a day researching the country,restaurants, the upcoming election we'll be flyiing into, etc. I am also looking into perhaps becoming a volunteer somewhere to help churches, building developers, the library in Santo, etc.. I cant very well party 7 days a week drinking el presidentes and chasing dominican women, Europeans as well lol. I am a 28 yr old American Male! Where are the good jet ski rentals, horse back riding, you know the good stuff! My roomate will undoubtedly have the edge on particular answers but I am also one to look into getting a second opinion for my self. Thankyou, Tripps

This thread has gone all over the place in just a few posts!

If you have issues with a someone, add them to your ignore list (UserCP).
Then you will not even see their posts or receive any messages from them.

MotorCity Mike - Threads are closed based on their content. PM or email the moderator or me if you have any issues with how we control the message board.

Rosemary - Robert and Scott are two different people.

I agree 100% with BushBaby, it was an unnecessary comment and a very bad attempt at sarcasm.

Now let's get the thread back on topic so it's not closed. Please do not post anymore off topic posts and Scott DO NOT respond to any comments in this thread relating to YOU.

my two cents

I pulled everything out except for about a $1,000 just to keep account open. My first concern with Hypo was a "corralito" implementation following a number of delayed payments on bonds and the downgradings. Would wait until at least August before even considering redepositing in a DR bank. This guy might be desperate even between May 16th and the hand over in August. His quote "power is made to be used" is a bit scary. Why risk it with an asshole?
Will wait after the transfer of power to see how the new guy on the block will react with the mess he is going to be stuck with.

Actual Interest rates

The interest rate that the Central Bank has been paying since the beginning of the year on their Zero Coupon short term certificates is almost 60%. The media has consistently and erroneously been stating that the interest rates are 35% - 50%. Those were the rate charged last year.

Just this past wednesday, the had their largest single day auction of almost DR$14 Billion. Thats right BILLION. These auctions happen every week.

Maybe history is a good teacher with respect to this issue? I know nada about how to read the figures or what those bank auctions mean, but I witnessed Argentina. Why would the DR be different? If it all blows up, I am quite sure I won't be smart enough or quick enough to protect myself.

So ... while it would be much more convenient to deposit most of my money here, I won't do so... can't afford to lose what I have, and I'd rather the aggravation of moving it over as needed, than the risk of loss.

personal experience...

I opened a US dollar account with Mercantil in Santo Domingo last year. Six months later I arrived in the DR, and there was a problem with my original deposit of $1200 US. I corresponded several times with the English speaking rep in Santo Domingo to arrange the opening of a peso account so I might transfer funds to pesos as needed. She assured me all would be ready.

The week before I traveled, she suddenly alerted me to a 'problem' and suggested that my bank in Canada was trying to revoke clearance on the check.

Impossible! The system in North America is such that once a check clears, it clears for good. But I had to go through the giant hassle, while traveling, of coordinating a search by my bank to copy the cleared check and send those copies it to her. She was going on holiday the day before I arrived, and I heard nothing while in transit.

I bypassed Sto Dgo and with the help of Grahame Bush in PP, opened a peso acct there. The funds had suddenly reappeared in my account the day before I arrived. But how had they disappeared in the first place?

btw, I never did receive the 6-8 months of interest that should have been credited to the US $ account before I arrived.

I find this entire incident highly irregular by NA standards. So now I do as Miko and others. I write a check for under 1000 US $, deposit to the US $ account with Mercantil, then transfer to pesos as needed. I then use my Mercantil cash card so I need not traipse about with too much cash at any one time.

Oh... I also never use my US based bank/credit cards in the system here. Love my Mercantil cash/visa card. Haven't had a problem with it.

Just my two cents... US pennies, btw.

dawnwil

PS Mondongo, others, with understanding of such things, how do you analyze those auctions for a neophyte?

Touche, Miko

I did exactly the same as you several months ago, pulled everything out of banks here except what I could afford to lose. I've left some pesos in the bank, but my $ account is down to $1000. I discovered I could legally transfer to a Cayman offshore account, now that Mercantil have been bought out by Republic Bank of Trinidad & Tobago - it is aT&T account in Caymans. Interest rate is AWFUL but money is safe. Rest of my money is with a finance house here in DR.
I don't think corralito will happen, but I'm pretty certain there will be new taxes on savings accounts, maybe not just on theinterest.

sorry...long

Dawnwil, just over a year ago the Central Bank announced (with support from the IMF) that it would start to auction certificates in order to bring down the supply of DR$. This would ,purportedly, lower the supply of DR$ and thus stem the exchange rate decline of the DR$ vs the US$.

Since the Central Bank and the IMF adopted this technique for supporting the DR$, the DR$ has proceded to fall from about 24 to the current 44 DR$ per US$. I am not claiming a causal relationship, but I hardly see it as a coincidence.

The way the certificates take money out of circulation is that someone who was holding DR$ would give up his cash in exchange for a promisory note (certificate). Aggressively selling certificates also raises interest rates (from about 35% to almost 60%).

In a normal working economy (USA), selling certificates by a central bank typically has at least 2 consequences:

1) Physically takes money out of circulation (as described above).
2) Slows down an economy.

THE RUB:
The rub with the steps the Central Bank took is that the DR is not a normal functioning free market economy.

1) Taking money out circulation by selling certificates at 60% interest does not work. It either leads to a spiral in interest rates, or it actually leads to more money in circulation because 1 DR$ borrowed today has to be paid with $1.6 a year form now. This leads to money supply growth, not money supply contraction.
2) The DR$ economy is already dead. Selling certifiactes is like beating a dead horse.

FINALLY:
AS I have posted several times over the last year, these certificates represent a debt of from DR$50 to DR$100 Billion when the next government takes over. What that means is that for the 2003 year, Mejia actually had DOUBLE the DR$90Billion that was alloted to them in the budget. When you read the central bank website, what you will find is that the length of time the certificates are sold for keeps increasing.

dawnwil said:

So now I do as Miko and others. I write a check for under 1000 US $, deposit to the US $ account with Mercantil, then transfer to pesos as needed. I then use my Mercantil cash card so I need not traipse about with too much cash at any one time.

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You can always open up a BPD (US FDIC insured bank) US$ account here and instantly transfer funds into your Banco Popualar RD$ account.
They have always given us great exchange rates and we have never had a problem.

BPD have an office in the Banco Popular building in Santo Domingo (4th floor). The staff are great and speak English, plus you can get an ATM/Debit Card linked directly to your account.

BPD New York: http://bpdbank.com/
Banco Popular DR: http://www.bpd.com.do/ingles/home+page.htm

People, don't get discouraged based on what you read here!!

I remember back in December when every expat in Sto. Dgo. said that the peso would probably hit $100! Haven't happen yet, though it did hit half that.

I remember when the board was basically suggesting that Hippo initiated the revolt in Haiti to further influence the elections. Not only did that not happen, but Hippo refused to officially get involve in the ordeal. The only thing dominican going into Haiti at that time were helicopters to transfer dominican citizens from the embassy in Port-au-Prince. I still think Hippo is a big a**, but my point is that the case was blown way out of proportion by many DR1ers.

I remember when economist the world over (including those of the World Bank) predicting an economic decline of 3% or more for the Dominican Economy for the end of 2003. Not only did the economy only declined by 1% (2% less than predicted), but now there are some cheerful predictions of economic growth of up to 4% starting the end of next year!

My point is this, if you want to bank in the Dominican Republic, then go ahead and do it! The only thing that can keep the dominican economy afloat is an injection of dollars into the system, if we keep sending every opportunity to increase the dollars in the system (either by one idividual or a million of them) we are simply helping to harm the country beyond what Hippo has done. Every dollar account counts!! Stop scaring them AWAY!!!! Of course, I advise every potential customer to a dominican bank to first review the risks and rewards of such action with their personal financial advisor or with well knowledgeable professional financiers in the Dominican Republic. DO NOT MAKE A DECISION BASED ON WHAT YOU READ OR HEARD FROM ANY DR1ERS, ESPECIALLY THE EXPATS, BECAUSE AS PROVEN HUNDREDS OF TIMES BEFORE, THEY TEND TO BLOW THINGS WAY OUT OF PROPORTION. FROM THE PUTAS DEAL, TO THE ECONOMIC FROM, TO THE WAY DOMINICANS BEHAVE, THEY BLOW IT ALL OUT OF PROPORTION!!!!

DR1 is a good place to have some laughs though, the funniest (and sometimes most stupid things) are said here, things that can't fail to make anyone break out into a laugh!!

I hear you!

Nal0whs said:

I remember back in December when every expat in Sto. Dgo. said that the peso would probably hit $100! Haven't happen yet, though it did hit half that.

I remember when the board was basically suggesting that Hippo initiated the revolt in Haiti to further influence the elections. Not only did that not happen, but Hippo refused to officially get involve in the ordeal. The only thing dominican going into Haiti at that time were helicopters to transfer dominican citizens from the embassy in Port-au-Prince. I still think Hippo is a big a**, but my point is that the case was blown way out of proportion by many DR1ers.

I remember when economist the world over (including those of the World Bank) predicting an economic decline of 3% or more for the Dominican Economy for the end of 2003. Not only did the economy only declined by 1% (2% less than predicted), but now there are some cheerful predictions of economic growth of up to 4% starting the end of next year!

My point is this, if you want to bank in the Dominican Republic, then go ahead and do it! The only thing that can keep the dominican economy afloat is an injection of dollars into the system, if we keep sending every opportunity to increase the dollars in the system (either by one idividual or a million of them) we are simply helping to harm the country beyond what Hippo has done. Every dollar account counts!! Stop scaring them AWAY!!!! Of course, I advise every potential customer to a dominican bank to first review the risks and rewards of such action with their personal financial advisor or with well knowledgeable professional financiers in the Dominican Republic. DO NOT MAKE A DECISION BASED ON WHAT YOU READ OR HEARD FROM ANY DR1ERS, ESPECIALLY THE EXPATS, BECAUSE AS PROVEN HUNDREDS OF TIMES BEFORE, THEY TEND TO BLOW THINGS WAY OUT OF PROPORTION. FROM THE PUTAS DEAL, TO THE ECONOMIC FROM, TO THE WAY DOMINICANS BEHAVE, THEY BLOW IT ALL OUT OF PROPORTION!!!!

DR1 is a good place to have some laughs though, the funniest (and sometimes most stupid things) are said here, things that can't fail to make anyone break out into a laugh!!

Click to expand...

I will not get discouraged but will keep my eyes open on anything written here about DR banks. As a matter of fact, on my next trip to the DR on May 6th, I will open yet another bank account for a business that I am planning on opening in the future. I do agree that there are some situations that should be blown out of proportion and it's only for people to be aware of a certain situation/problem.

And Selectivity

MC Mike

Ditto. I have also found comments are often times also selectively deleted.
From my experience here, I know I have had substantive comments deleted that where tangetially relate to the thread and were constructive and pertinent in terms of feedback and perspective. However, the comments some person made that deviated from the topic (which my comments referenced) were allowed to stay while mine were deleted. That to me is highly selective. If non-topic threads are to be edited then go all the way and make it clear, don't half-step. Also justification should be provided else we are left with a faux-medium of free speech, at the capricious whims of the moderators. That to me is just censorship.
To stay on topic of course...
My guess is banks in DR operate the same way: we'll keep your money and return if we like you and if we don't good luck going up the creek without a paddle.

D

MotorCity Mike said:

It IS funny how some threads stay open (depending on who started them) and others close rapidly.

I don't know a lot of people on here yet, but I have seen some "favorites" being able to keep a thread going on when others are shut down right away.

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deelt said:

MC Mike

Ditto. I have also found comments are often times also selectively deleted.
From my experience here, I know I have had substantive comments deleted that where tangetially relate to the thread and were constructive and pertinent in terms of feedback and perspective. However, the comments some person made that deviated from the topic (which my comments referenced) were allowed to stay while mine were deleted. That to me is highly selective. If non-topic threads are to be edited then go all the way and make it clear, don't half-step. Also justification should be provided else we are left with a faux-medium of free speech, at the capricious whims of the moderators. That to me is just censorship.

Click to expand...

I think you all read way too much into it. I have been on this board for a long time...if you think anyone has enough time to read every single post, maybe you should sign up for the job.? Don't mean to sound harsh, but if no one reports bad posts to the moderator, what makes you think anyone has even read it? Thus, these unread posts go uncensored. Just my thoughts, could be wrong here...

Nal0whs said:

I remember back in December when every expat in Sto. Dgo. said that the peso would probably hit $100! Haven't happen yet, though it did hit half that.

I remember when the board was basically suggesting that Hippo initiated the revolt in Haiti to further influence the elections. Not only did that not happen, but Hippo refused to officially get involve in the ordeal. The only thing dominican going into Haiti at that time were helicopters to transfer dominican citizens from the embassy in Port-au-Prince. I still think Hippo is a big a**, but my point is that the case was blown way out of proportion by many DR1ers.

I remember when economist the world over (including those of the World Bank) predicting an economic decline of 3% or more for the Dominican Economy for the end of 2003. Not only did the economy only declined by 1% (2% less than predicted), but now there are some cheerful predictions of economic growth of up to 4% starting the end of next year!

My point is this, if you want to bank in the Dominican Republic, then go ahead and do it! The only thing that can keep the dominican economy afloat is an injection of dollars into the system, if we keep sending every opportunity to increase the dollars in the system (either by one idividual or a million of them) we are simply helping to harm the country beyond what Hippo has done. Every dollar account counts!! Stop scaring them AWAY!!!! Of course, I advise every potential customer to a dominican bank to first review the risks and rewards of such action with their personal financial advisor or with well knowledgeable professional financiers in the Dominican Republic. DO NOT MAKE A DECISION BASED ON WHAT YOU READ OR HEARD FROM ANY DR1ERS, ESPECIALLY THE EXPATS, BECAUSE AS PROVEN HUNDREDS OF TIMES BEFORE, THEY TEND TO BLOW THINGS WAY OUT OF PROPORTION. FROM THE PUTAS DEAL, TO THE ECONOMIC FROM, TO THE WAY DOMINICANS BEHAVE, THEY BLOW IT ALL OUT OF PROPORTION!!!!

DR1 is a good place to have some laughs though, the funniest (and sometimes most stupid things) are said here, things that can't fail to make anyone break out into a laugh!!

Click to expand...

Whilst I accept that there are a LOT of "Doom & Gloom" merchants on this board, I totaaly reject your comments about all DR1'ers blowing things out of proportion! YES, there have been occasions when expectations of financial collapse have been mentioned AND debates of heavy devaluation of the RD $ - the more serious of us have tried to maintain a more level headed approach & proclaim caution in making RASH decisions - decisions being taken without serious thought &/or investigation.

As you seem to have time on your hands to write drivel about ALL DR1'ers (especially the Ex-Pats) blowing things out of proportion (not the most sensible way to endear yourself to the majority of this board I hasten to add) then might I suggest you do a search of the archives & stae ONE example of my lack of support for the Dominican people, ONE example of my disrespect for this country & ANY suggestion that people should NOT invest here!! Yes, I suggest invest in U$D rather than RD $ - hardly surprising the way the RD$ has fallen, but NEVER have I suggested people should NOT invest here.

There are many other "Ex-Pats" who give similar advice to me (Marco, CTremain, jjsuk, Carol, Chiri, Paul, Ken, Tom, Robert, Peter & Alex, are the FEW who spring to mind) who do give EXCELLENT advice gleaned over the years of living here, to would be investors/relocators & even Scott (escott who he admits can be somewhat outspoken at times) does basically give supportive comments to the country.

I think you owe all of them (& me) an apology for making such a generalised comment & basically doing what you SAY we all do, overstate the case in question!!

Just as an aside, if DR1'ers were only here to provide lauhghs for the such as you, how come we have such a large following? Could it be that over the years (far longer than you have been posting) we have aquired a following that appreciates the (normally) sane & logical advice written here??

What say YOU Robert???- Grahame.
(With apologies to all those who give excellent advice & I have not included abouve - Altzimers is my only excuse!!).

To BushBaby:

Grahame,

I do not know you personally, but I’ve come to appreciate your level-headed approach to questions from first-timers; your sense of fairness is evident in your responses to these questions, and the information you provide to would-be travelers and/or would-be residents is first-rate, especially in light of the fact that you do it free of charge.

Have a good day,

-Joseito