Dominican Peso Forecast

mekkizm

Member
Jun 1, 2004
104
0
16
That's bad news for anyone holding bonds in pesos!

Noted, I was truly thinking of doing this for several reasons.

1- I'm making plans to spend much more time in my hometown of Salcedo and Santiago in the next few years.
I believed that having a steady stream of compounding interest on $1,000,000 pesos would add up nicely at 11-12% in a BHD/Leon special bond for 3 years (been researching this since I have those pesos already there)

2- Having that money in my hands or under a mattress sorta speak is a sure way to spend, lose it are open up some negocio with one of the primos which every other month they have an " amazing idea" but just need an investor. (lord help me)

3- Because of reason # 2,, that already happened years ago, I wanted to open up a CD account, listened to family and friends, didn't secure my funds in a decent interest paying CD and now years later THE MONEY IS GONE!!!!

4- The Freaking money is there in pesos already and trying to exchange it for dollars and bring it back to NY is not an option for me....... This is stressing me out just writing it!

What to do, what to do????

The peso isn't worth **** and losing value everyday (excuse the word), funds are parked in an account that isn't gaining any real interest and my family is driving me crazy to "open up a business with them.... I have zero intentions of do that!!

Lord...............................................................
 

JDJones

Moderator - Covid 19 in DR
Jan 7, 2016
2,036
87
48
Noted, I was truly thinking of doing this for several reasons.

1- I'm making plans to spend much more time in my hometown of Salcedo and Santiago in the next few years.
I believed that having a steady stream of compounding interest on $1,000,000 pesos would add up nicely at 11-12% in a BHD/Leon special bond for 3 years (been researching this since I have those pesos already there)

2- Having that money in my hands or under a mattress sorta speak is a sure way to spend, lose it are open up some negocio with one of the primos which every other month they have an " amazing idea" but just need an investor. (lord help me)

3- Because of reason # 2,, that already happened years ago, I wanted to open up a CD account, listened to family and friends, didn't secure my funds in a decent interest paying CD and now years later THE MONEY IS GONE!!!!

4- The Freaking money is there in pesos already and trying to exchange it for dollars and bring it back to NY is not an option for me....... This is stressing me out just writing it!

What to do, what to do????

The peso isn't worth **** and losing value everyday (excuse the word), funds are parked in an account that isn't gaining any real interest and my family is driving me crazy to "open up a business with them.... I have zero intentions of do that!!

Lord...............................................................

I have invested in CD's for years. I've invested in them when they were offered directly to customers by Banco Central and before banks got their greedy hands involved. I was fortunate enough to have had them during the end of the Hipolito years when interest rates were 50%+.

I started with a set amount. Now, many years later, I still have that set amount, and I have received interest payments far exceeding what my original set amount has been.

So tell me, If I'm not worried about the exchange rate because I am not going to exchange my pesos for dollars, did I come out ahead in my Dominican peso world?

Today, If you want my opinion the whole "Invest in CD's" went down the tubes when banks got involved.
 

Russell

Well-known member
Jun 17, 2017
772
91
48
Noted, I was truly thinking of doing this for several reasons.

1- I'm making plans to spend much more time in my hometown of Salcedo and Santiago in the next few years.
I believed that having a steady stream of compounding interest on $1,000,000 pesos would add up nicely at 11-12% in a BHD/Leon special bond for 3 years (been researching this since I have those pesos already there)

2- Having that money in my hands or under a mattress sorta speak is a sure way to spend, lose it are open up some negocio with one of the primos which every other month they have an " amazing idea" but just need an investor. (lord help me)

3- Because of reason # 2,, that already happened years ago, I wanted to open up a CD account, listened to family and friends, didn't secure my funds in a decent interest paying CD and now years later THE MONEY IS GONE!!!!

4- The Freaking money is there in pesos already and trying to exchange it for dollars and bring it back to NY is not an option for me....... This is stressing me out just writing it!

What to do, what to do????

The peso isn't worth **** and losing value everyday (excuse the word), funds are parked in an account that isn't gaining any real interest and my family is driving me crazy to "open up a business with them.... I have zero intentions of do that!!

Lord...............................................................
I understand your frustrations .... My Espossa wants me to invest into DR Bonds so we will have a forever income... it is difficult to explain the complexities of the DR Bonds and foreign exchange and the relationship thereof.
I keep my money in Canadian Banks and take what I want for my DR visits, expenses and allotments.

The other concept that is most difficult for my particular family is the concept of business and ''sweat equity''.
Also they want to hire other people for the work they are quite capable of doing.
I cannot , in good conscience, invest in such Business adventures.
I just shed myself of a very good business, so I can retire and enjoy my well earned pensions.

Frustrations , frustrations, frustrations!!!
In fact, for the DR ,I am a very good business... yes me personally; I contribute more in one month to the actual cash flow of DR than 10 short stay tourists... that is not counting land purchases, car repairs, ;
Travel, Hotels and meals ; vacations every month to other DR sites etc. I think Snowbirds are good economics
I think this Snowbird is good economics for DR.
Russell
 

mekkizm

Member
Jun 1, 2004
104
0
16
I have invested in CD's for years. I've invested in them when they were offered directly to customers by Banco Central and before banks got their greedy hands involved. I was fortunate enough to have had them during the end of the Hipolito years when interest rates were 50%+.

I started with a set amount. Now, many years later, I still have that set amount, and I have received interest payments far exceeding what my original set amount has been.

So tell me, If I'm not worried about the exchange rate because I am not going to exchange my pesos for dollars, did I come out ahead in my Dominican peso world?

Today, If you want my opinion the whole "Invest in CD's" went down the tubes when banks got involved.
Those high rate days by all indications are long gone and don't seem to be ever returning.

Are you no longer using CD's at all to gain interest payments? Is that a dead road?
 
Jan 9, 2004
9,073
375
83
I have invested in CD's for years. I've invested in them when they were offered directly to customers by Banco Central and before banks got their greedy hands involved. I was fortunate enough to have had them during the end of the Hipolito years when interest rates were 50%+.

I started with a set amount. Now, many years later, I still have that set amount, and I have received interest payments far exceeding what my original set amount has been.

So tell me, If I'm not worried about the exchange rate because I am not going to exchange my pesos for dollars, did I come out ahead in my Dominican peso world?

Today, If you want my opinion the whole "Invest in CD's" went down the tubes when banks got involved.
Yours is a very narrow set of circumstances......and congratulations.

Your gains by being in pesos when it went from 54 down to 25 in 2004 would envy the best forex traders.

Taking out the banking crisis/IMF bailout......I have never been able to justify a peso investment as against other interest and dividend paying options available.

But if I was in your shoes, living and working there for all those years, I might do the same thing......just for the convenience......but definitely not for real ROI.

Respectfully,
Playacaribe2
 

JDJones

Moderator - Covid 19 in DR
Jan 7, 2016
2,036
87
48
Those high rate days by all indications are long gone and don't seem to be ever returning.

Are you no longer using CD's at all to gain interest payments? Is that a dead road?
At the moment, no. I've been patiently waiting and watching the bulletins published by BPD.

I've had luck purchasing and rehabilitating properties, and I'm getting ready to make an offer on another.

I'll use the funds for that.