exchange rate/interest/inflation ?

stanleyr

New member
Aug 20, 2005
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I note the exchange rate for the peso vs. US dollar has only dropped 10% in three years if you compare the exchange rate posted today vs. 2003 posts.
I note posts reflecting interest rates over 20% on certificates of deposit. If that is the case, is it so that putting a savings account into the banks in DR and getting that high rate of return makes big sense compared to the rates in other caribbean countries of max 5%. What's the catch? Or is there a catch?
Stanley
 

HOWMAR

Silver
Jan 28, 2004
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You should check out the monthly fluctuation of the exchange rate. In the early months of 2004 the exchange hit a high of approx. 56 pesos:dollar. Comparing one point in time in 2003 to the present gives a false impression of the fluctuation of the exchange rate. Current interest rates are in the 12% range for pesos and 5% for dollars.

http://www.bancentral.gov.do/tasas_cambio/TAC4014.PDF
 

Chris

Gold
Oct 21, 2002
7,951
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www.caribbetech.com
stanleyr said:
What's the catch? Or is there a catch?
Stanley

Of course there is a catch :laugh: I'm certainly not an economist but I do know basic cost of living has increased quite tremendously over the period. At one stage we were in such an inflationary spiral that stores brought in additional staff to simply run around and price things, as the crazy exchange rates fluctuations made a material difference literally from day to day. There is also the risk factor. Do some searches on the board - whole lot has been said about this.
 

stanleyr

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Aug 20, 2005
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You have answered my question

Thank you once again for answering my question.
Stanley