Who would have any money in a DR bank at this point? Can't cause a run on them if they aren't holding any cash.
- Thread starter Englishman
- Start date
??Coralito?? is coming?
gringo in dr said:
Dominicans and foreigners have billions of deposits within the banking system. However, at any one time a bank will only have 20% or less of these deposits on hand. The other 80% is "on the street" in the form of loans and other investments. If something happens to cause folks to lose confidence in the banking system, everybody will want their money at the same time. Because the bank will not have everybody's money on hand, some people will be turned away. This will cause even more panic and eventually the crash of the entire banking system.
The government does not want this to happen. If the banking system fails, THEY fail. That was the whole reason behind the bailout of Baniter. If the government didn't bail depositors out, there would have been a run on the entire banking system. If that happened, wealthy individuals inside and outside the government would have lost billions.
You can always trust that those in government will design and implement policies which protect and serve their own self interest.
On related news:
The dollar is up again. Which means that people will never believe again when they say it will go down. Which means that nobody will sell cheap dollars keeping the dollar high forever more. The government and dollar exchange house-owners lied to us! I am flabbergasted!
The government needs to buy US$48 M USD before February 11. They supposedly have at least the peso equivalent for the 27 M as interest for the bonds. Things don't look good.
The dollar is up again. Which means that people will never believe again when they say it will go down. Which means that nobody will sell cheap dollars keeping the dollar high forever more. The government and dollar exchange house-owners lied to us! I am flabbergasted!
The government needs to buy US$48 M USD before February 11. They supposedly have at least the peso equivalent for the 27 M as interest for the bonds. Things don't look good.
Last edited:
Hey Pib,
I think HB, Escott, Robert & a couple of others are holding on to all their US Dollars so that they can well them to the Government when they actually NEED to pay that US $27 Mill!!! Come on you guys, put your US $'s back into circulation & bring the exchange rate down again!!
My view about the recent "Lowering" was so that the CB could buy those Dollars they need at reduced rates knowing full well the trend is STILL upwards!! - Grahame.
I think HB, Escott, Robert & a couple of others are holding on to all their US Dollars so that they can well them to the Government when they actually NEED to pay that US $27 Mill!!! Come on you guys, put your US $'s back into circulation & bring the exchange rate down again!!
My view about the recent "Lowering" was so that the CB could buy those Dollars they need at reduced rates knowing full well the trend is STILL upwards!! - Grahame.
