another certificate of deposit question

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billyidol

Banned
Feb 9, 2004
334
10
18
A number of people on dr1 say they use a financial guy in POP (ANEOCA???) or any bank that offers high interest rates for that matter!. Having read a number of posts on this issue i have a question for those that have converted their US$ to RD$ to reap the high interest rates!

What are your experiences receiving high interest rates and living with a fluctuating RD$, are you not nervous given the unstable RD and it's ability to devalue your investment. ????

Is it fair for me to assume, that YOU have made a decision to convert your US$ to RD$ with the above financial house or bank AND have simply ACCEPTED that the RD will go up and down. My question is, is this your thought process?

Im probably asking the obvious but i'm wondering what the advantage is given that when the RD rises against the US$ ...it will adversely effect one's profit earnt from the CD deposit! Why would you do this?????

cheers
bi
 
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Squat

Squat

Tropical geek in Las Terrenas
Jan 1, 2002
2,241
169
63
doing great with Banco Central certif' in pesos...
I live down here, spend in pesos, and don't plan to either change back to US$ or € or speculate..
I am happy to cash my pesos every 1st day of the month...

However I suggest to only put 30% of your money to Banco Central. Another 30% stays in US$ or €... And another 30% in real-estate...

But I am only speaking for myself, and I am not any kind of specialist or guru... Then all in all, it works great for me...
 
Conchman

Conchman

Silver
Jul 3, 2002
4,586
160
63
57
www.oceanworld.net
billyidol said:
A number of people on dr1 say they use a financial guy in POP (ANEOCA???) or any bank that offers high interest rates for that matter!. Having read a number of posts on this issue i have a question for those that have converted their US$ to RD$ to reap the high interest rates!

What are your experiences receiving high interest rates and living with a fluctuating RD$, are you not nervous given the unstable RD and it's ability to devalue your investment. ????

Is it fair for me to assume, that YOU have made a decision to convert your US$ to RD$ with the above financial house or bank AND have simply ACCEPTED that the RD will go up and down. My question is, is this your thought process?

Im probably asking the obvious but i'm wondering what the advantage is given that when the RD rises against the US$ ...it will adversely effect one's profit earnt from the CD deposit! Why would you do this?????

cheers
bi
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if you exchange your dollars for pesos to put into a RD deposit and the peso rises against the dollar, you actually gain more than just your interest. I think you meant the scenario if the peso loses value against the dollar, it was probably just your wording. In any case, its very unlikely for the peso to gain strength against the dollar. This only happened after the new government took power and confidence was restored. History shows its normally a one way street.

There is a reason why they offer these high interest rates - you are likely to 'lose' most of your interest (via exchange rate) if you ever want to change those pesos back into dollars one day.
 
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billyidol

Banned
Feb 9, 2004
334
10
18
Conchman said:
if you exchange your dollars for pesos to put into a RD deposit and the peso rises against the dollar, you actually gain more than just your interest. I think you meant the scenario if the peso loses value against the dollar, it was probably just your wording. In any case, its very unlikely for the peso to gain strength against the dollar. This only happened after the new government took power and confidence was restored. History shows its normally a one way street.

There is a reason why they offer these high interest rates - you are likely to 'lose' most of your interest (via exchange rate) if you ever want to change those pesos back into dollars one day.
Click to expand...


yeah im sure your right...im hopeless sometimes with maths. Anyways thanks for your input i appreciate it. im weighing carefully what i want to do and dont want to make mistakes
cheers
bi.
 
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Snuffy

Bronze
May 3, 2002
1,462
6
0
You exchange money as you need it AND you can put some money into Central Bank but not all. It is no big deal.
 
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THE GAME

New member
Jul 13, 2005
414
0
0
www.nydailynews.com
Snuffy said:
You exchange money as you need it AND you can put some money into Central Bank but not all. It is no big deal.
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why put money into central bank and not banco popular/scotiabank/citibank.. or any other bank? central bank pays more in apy%?
 
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amandalivoti

New member
Jan 20, 2006
57
0
0
THE GAME said:
why put money into central bank and not banco popular/scotiabank/citibank.. or any other bank? central bank pays more in apy%?
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i'm no financial advisor- but private banks are the ones that can fold! and they do down here with surprising regularity, whereas, something really big would have to happen to put the banco central out of business!
 
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ricktoronto

Grande Pollo en Boca Chica
Jan 9, 2002
4,837
0
0
Fools rush in where angels fear to tread with peso deposits and DR banks. Risk and reward could not be more evident with these types of investments.
 
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amandalivoti

New member
Jan 20, 2006
57
0
0
british bulldog said:
I would love to here what toroto ricks comments are on this amandalivoti !!!!!
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??? did i say something stupid??
well, like i said, i'm no expert, but i have lost money in banks that have crashed... twice. not enough time for the peso to devaluate! whenever there's a big fanfare over interest rates- something bad is usually not far behind- which has been my experience.
20% is pretty tempting though.
did i say somehting stupid??
 
R

Ricardo900

Silver
Jul 12, 2004
3,269
37
48
If you open an account with US based Citibank in the DR, should'nt your deposits be secured up to a certain amount, i.e. $100,000 FDIC??
 
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british bulldog

New member
Jan 21, 2006
221
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Sooooo rick you do admit its an investment!!!!!!!! ALBEIT a bad one in your opinion;investments fluctuate up and down, you know!The art of this; is when to know when to buy in ;and when to sell out! Quote, in the past bought rd at 44 ,got out at 34,but mabee next time not so profitable,here we go again risk factor comments;HERE THEY COME) BULL SH-T ,its alot about timeing.
 
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ricktoronto

Grande Pollo en Boca Chica
Jan 9, 2002
4,837
0
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Who said it wasn't an investment?

All an investment is, is an asset in which you put your money and on which you expect a return of some kind. CD's, mutual funds, precious metals, and so forth.

It is a stupid one, which means to me you are an extremely qualified investor, using the birds of a feather principle :)
 
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ricktoronto

Grande Pollo en Boca Chica
Jan 9, 2002
4,837
0
0
Ricardo900 said:
If you open an account with US based Citibank in the DR, should'nt your deposits be secured up to a certain amount, i.e. $100,000 FDIC??
Click to expand...

That would be nice if it existed which it doesn't so no, you don't get dick. And the FDIC does not cover US subsidiaries operating in other countries. You are getting 24% interest or whatever vs. a lower rate in the US (for US$) for reasons. Risk, risk and risk.
 
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playacaribe2

Gold
Jan 9, 2004
10,912
2,247
113
Caveat Emptor...

Many of the so-called sound alike banks and businesses (yes businesses as well) are really separate corporations (chartered in the D.R) quite possibly operating as wholly owned subsidiaries. While they share the same name as their U.S. counterparts, that is really where the similarity ends.

I suggest that the audits performed and required of U.S. banking institutions and the capital ratios necessary for sound bank lending are quite different from here to there. Such things as mirror offshore banks, off the books lending and separate sets of books are NOT the norm in the U.S. or Canada.

Respectfully,
Playacaribe2




ricktoronto said:
That would be nice if it existed which it doesn't so no, you don't get dick. And the FDIC does not cover US subsidiaries operating in other countries. You are getting 24% interest or whatever vs. a lower rate in the US (for US$) for reasons. Risk, risk and risk.
Click to expand...
 
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amandalivoti

New member
Jan 20, 2006
57
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0
hey, not all is lost when a bank folds!

i have to say, in the government's defense- the superintendencia de bancos did finally pay me the money i lost from the banco panamericano--- FIFTEEN YEARS LATER!!!
you want to talk about devaluation????
 
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amandalivoti

New member
Jan 20, 2006
57
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0
when i orginally invested that money, some 76,000 pesos, fifteen years ago, the peso was at something like seventeen to one. when the superintendencia finally gave me my money back, the peso was at the all time high of about fifty to one!
bulldog- you do the math- and thanks so much for replying to me!
 
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british bulldog

New member
Jan 21, 2006
221
0
0
how convienient to pay back at that rate,must have been sitting back waiting for the right time,obviously had your money sitting waiting somehere!!!!lesson here dont feed the sharks!!!!and dont swim in dangerous waters!!!
 
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