another question about investing with Banco Central

blowfelt · Nov 3, 2004

The question is about investing in Banco Central,,,Peso Certificates

This thread has been covered many times before,, the last time was in May 2004,, but time has now seen changes especially the weakened dollar and of course the prices remaining high. These prices remaining high is having a huge effect on me as well as others i know on the island and to the point where i have to seriously consider the options of investing a small amount of money in Peso.........

I have looked through the archive and all the comments from the thread in May of this year,,,,but i'm really no closer to understand what it all means!!

Can someone help,,,,,,i remember hearing on DR1 about peso 32.5 and offering 3 points higher and certificates @ 35%,,,,,,do they pay out monthly,yearly etc

And generally what do people think about them now!!

Also any information people have on banking US dollar in banks here and the interest rates on offer.

Please be gentle with me,,its my first posting

duhtree · Nov 3, 2004

banco central

I am surprised. You say you have looked in the archives but are still lost regarding investments.
This subject has been covered so many times it's frayed and raggety.
Anoeca would give you some insight into private banking.
Banco central and the others have fairly clear guidlines about cd's etc. and their payouts.
Bushbaby, escott, mary stapleton, hillbilly, robert, et al.have all posted extensively on this subject. Both their deffeats and their victories.
Try again. John

Seachange · Nov 4, 2004

blowfelt said:
The question is about investing in Banco Central,,,Peso Certificates

This thread has been covered many times before,, the last time was in May 2004,, but time has now seen changes especially the weakened dollar and of course the prices remaining high. These prices remaining high is having a huge effect on me as well as others i know on the island and to the point where i have to seriously consider the options of investing a small amount of money in Peso.........

I have looked through the archive and all the comments from the thread in May of this year,,,,but i'm really no closer to understand what it all means!!

And generally what do people think about them now!!

Please be gentle with me,,its my first posting

You are probably confused because there were so many differing opinions in previous posts.

Today, the facts speak for themselves. Earlier this year I encouraged people to lock in Banco Central CDs for as much and for as long as they could. Those who did, made a killing. Those who didn't and exchanged pesos for dollars, got killed.

What should you do now?

Buy BANCO CENTRAL CDs which offer up to a 32% return. The DR continues now and for the forseeable future to be on an upward economic trend. On the other hand, the US and its dollar are on a downward spiral and I don't see that changing in the immediate future.

iluvdr · Nov 9, 2004

2005 Best Buy!

I agree with Seachange... however I would wait till after New Year's to buy pesos. If your holding US, the exchange rates are bound to change after the holidays. My speculation is anywhere between 35-38. Already the Free Zone companies are screaming and most of them under $35 RD for $1 US are not competitive.... some ajustement will have to be made shortly, tho in the long term everybody agrees that the Dominican economie is on and uptrend and that most of the pressure is due to lack of liquidity.
The down side , I also expect that the Central Bank will lower it's interest rate to 24%-27% (about what the commercial banks are now offering)by early next year... But what ever the conditions are, Central Bank CD's are a good buy!!!

mikeyone · Nov 9, 2004

Cashing out?

iluvdr said:
I agree with Seachange... however I would wait till after New Year's to buy pesos. If your holding US, the exchange rates are bound to change after the holidays. My speculation is anywhere between 35-38. Already the Free Zone companies are screaming and most of them under $35 RD for $1 US are not competitive.... some ajustement will have to be made shortly, tho in the long term everybody agrees that the Dominican economie is on and uptrend and that most of the pressure is due to lack of liquidity.
The down side , I also expect that the Central Bank will lower it's interest rate to 24%-27% (about what the commercial banks are now offering)by early next year... But what ever the conditions are, Central Bank CD's are a good buy!!!

Has anyone had any experience regarding redeeming or cashing out Certificates from the Central Bank and where does the monthly interest go..I understand that the Central Bank will not cash out Certs. but will only renew them?.......M.

Sharron · Nov 9, 2004

I cashed out in August, no problems.

Monthly interest was paid into the DR bank I specified when I bought the certificate, it was always the correct amount and paid on the same day every month, it was never late.

Escott · Nov 9, 2004

Seachange said:
You are probably confused because there were so many differing opinions in previous posts.

Today, the facts speak for themselves. Earlier this year I encouraged people to lock in Banco Central CDs for as much and for as long as they could. Those who did, made a killing. Those who didn't and exchanged pesos for dollars, got killed.

What should you do now?

Buy BANCO CENTRAL CDs which offer up to a 32% return. The DR continues now and for the forseeable future to be on an upward economic trend. On the other hand, the US and its dollar are on a downward spiral and I don't see that changing in the immediate future.

What in particular is this UPWARD economic trend you speak about other than the strengthening of the Peso? As I see it for the first 2 months of Leonel the Electric was out more than ever before. Business can't do better without electric, can they? At the condo that I live in with 24/7 electric we have had 2 months of 175$ per condo shortages caused by the inflation and the need for gas/oil and this last month a 68$ shortage. This isn't peso btw this is in US Dollars and this hasn't happened before.

I can't possibly see how there can't be tremendous reprecussions to the economy because of this and the spike in oil 6 months from now, but what the hell do I know, I cant even afford to wipe my arse anymore.

Escott

mondongo · Nov 10, 2004

Seachange said:
... The DR continues now and for the forseeable future to be on an upward economic trend....

....the US and its dollar are on a downward spiral and I don't see that changing in the immediate future.

This is the type of thinking/conclusions that drives me toward the theory of multiple universes.....Seachange clearly does not live in the universe that I call home.

Seachange · Nov 10, 2004

mondongo said:
This is the type of thinking/conclusions that drives me toward the theory of multiple universes.....Seachange clearly does not live in the universe that I call home.

Thank goodness. I like to MAKE money! Apparently, your universe had you missing out on 50% returns this past year.

iluvdr · Nov 11, 2004

Escott said:
What in particular is this UPWARD economic trend you speak about other than the strengthening of the Peso? As I see it for the first 2 months of Leonel the Electric was out more than ever before. Business can't do better without electric, can they? At the condo that I live in with 24/7 electric we have had 2 months of 175$ per condo shortages caused by the inflation and the need for gas/oil and this last month a 68$ shortage. This isn't peso btw this is in US Dollars and this hasn't happened before.

I can't possibly see how there can't be tremendous reprecussions to the economy because of this and the spike in oil 6 months from now, but what the hell do I know, I cant even afford to wipe my arse anymore.

Escott

Escoot, I mentionned upward... because the investors confidence is rising among other things. Yes, there are still some issues that remain to be solved, but the DR economie is still the fastest growing economie in the caribean!
The strengh of the dollar in itself is not always a plus for an economie but rather a sign of improvement... The Central bank CD's are a must buy if you can afford them and is a smart way to contravent the local currency evaluation.
More and more foreign financial institutions are buying Dominican CD 's and are selling them to there clients as mutual funds for the latin market.
I am greatefull for having the balls to buy CD's when almost everyone on this forum was screaming to stay away! (May-June 04)
I have done great with the Central Bank CD's and encourage others to do the same. Good luck!

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