Banco Central
The most recent Banco Central auctions and offerings are so close to the bank certificate rates that it doesn't make sense to get into Banco Central certificates anymore. Unless you were able to fix your certificate several months ago at just over 30% rates for a year, you are out of luck. The tactic by Banco Central and the new government is to continue reducing interest rates in the hope that offering more certificates at lower rates will reduce the fiscal quasy-deficit(debt differential from bankrupt banks) the bank inherited from the Baninter and Bancredito mess.
Knowing there are naive investors out there, they are now offering dollar certificates at miserable 7% rates. No one should fall for this. You're better off getting peso certificates.
The new government has taken a a mission to keep the peso artificially high so it can steal 50% of the value of the dollar from the poor Dominicans abroad who send over $3 billion dollars to DR every year. But the dollar is worth at least as much as $40 Dominican pesos, not less.
Just read this comment sent by a Dominican from Brooklyn in today's Diario Libre Online in the economics page..
"De: juan , brooklyn
Que podemos nosotros hacer el dolar vajando el banco central
vajando Y los articulos de primera nesecidad subiendo como puede vivir el pobre con lo poco que podemos mandarles
si todo estuviera a como uno cambia en realidad estuviese
la cituacion un poco mejor perdon (Es mi pensar)."
Although his Spanish is not that good, his essence is clear. He, as well as all Dominicans abroad, now have to work twice as hard to send the same amount of peso equivalent as a few months ago, but as the dollar goes down in DR, prices have risen twice as much and not gone down as called for by the fake overvaluation of the peso.
Prices have gone so high since Leonel took office that the pound of grapes has gone from $49.95(Hipolito's government) to $98.95 today. So do apples, pears, platanos, bananas, oranges, 95% of canned foods, transportation, taxes, phone bills, electric bills...you name it, it has gone up and it will continue to go up.
TW
The most recent Banco Central auctions and offerings are so close to the bank certificate rates that it doesn't make sense to get into Banco Central certificates anymore. Unless you were able to fix your certificate several months ago at just over 30% rates for a year, you are out of luck. The tactic by Banco Central and the new government is to continue reducing interest rates in the hope that offering more certificates at lower rates will reduce the fiscal quasy-deficit(debt differential from bankrupt banks) the bank inherited from the Baninter and Bancredito mess.
Knowing there are naive investors out there, they are now offering dollar certificates at miserable 7% rates. No one should fall for this. You're better off getting peso certificates.
The new government has taken a a mission to keep the peso artificially high so it can steal 50% of the value of the dollar from the poor Dominicans abroad who send over $3 billion dollars to DR every year. But the dollar is worth at least as much as $40 Dominican pesos, not less.
Just read this comment sent by a Dominican from Brooklyn in today's Diario Libre Online in the economics page..
"De: juan , brooklyn
Que podemos nosotros hacer el dolar vajando el banco central
vajando Y los articulos de primera nesecidad subiendo como puede vivir el pobre con lo poco que podemos mandarles
si todo estuviera a como uno cambia en realidad estuviese
la cituacion un poco mejor perdon (Es mi pensar)."
Although his Spanish is not that good, his essence is clear. He, as well as all Dominicans abroad, now have to work twice as hard to send the same amount of peso equivalent as a few months ago, but as the dollar goes down in DR, prices have risen twice as much and not gone down as called for by the fake overvaluation of the peso.
Prices have gone so high since Leonel took office that the pound of grapes has gone from $49.95(Hipolito's government) to $98.95 today. So do apples, pears, platanos, bananas, oranges, 95% of canned foods, transportation, taxes, phone bills, electric bills...you name it, it has gone up and it will continue to go up.
TW