The Central Bank cd rates are so attractive, and yet when I mention them to smart business people (I'm not one of them), they never seem to consider Domincan Central Bank cds a good investment. They just say that if the interest is that high, there's got to be an equal downside, a strong risk factor. The only 2 reasons I can come up with are 1. - stability of the DR banking system and 2. - devaluation of the peso.
I'm not worried about the stability issue. I think with the IMF watching, the large middle class and the lessons learned from the Banniter scandal that the system is on solid ground.
The fluctuation of the peso is another story, but since the Leonel administration the peso has been relatively stable. Besides, if we're in a peso economy, then the fluctuation is less of a problem, right?
Other than my international health insurance policy, my monthly community association payments, and airline tickets what else is in dollars? Maybe a car every 4 or 5 years (I can't remember if car ins. is in dollars).
Am I wrong? And if not, why shouldn't I take advantage of the rates being triple those in the US?
-D
I'm not worried about the stability issue. I think with the IMF watching, the large middle class and the lessons learned from the Banniter scandal that the system is on solid ground.
The fluctuation of the peso is another story, but since the Leonel administration the peso has been relatively stable. Besides, if we're in a peso economy, then the fluctuation is less of a problem, right?
Other than my international health insurance policy, my monthly community association payments, and airline tickets what else is in dollars? Maybe a car every 4 or 5 years (I can't remember if car ins. is in dollars).
Am I wrong? And if not, why shouldn't I take advantage of the rates being triple those in the US?
-D