Dominican Peso

BostonMary

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May 18, 2002
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I went on a currency converter and saw the current exchange rate of US dollars as 40.40 peso for each dollar. Again it seems the peso is being devalued. I have CDs in pesos at Banco Leon and am contemplating cashing them all and and spending pesos before they go up to 50 to 1 US. Is anyone else contemplating any moves?
 

curious29

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Sep 20, 2012
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why would you make deposit in pesos observing trend in last few years ? its going downhill....while the prices are going up ;]
 

the gorgon

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I went on a currency converter and saw the current exchange rate of US dollars as 40.40 peso for each dollar. Again it seems the peso is being devalued. I have CDs in pesos at Banco Leon and am contemplating cashing them all and and spending pesos before they go up to 50 to 1 US. Is anyone else contemplating any moves?
not good. it was 39.85 last friday
 

Taca?o

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I went on a currency converter and saw the current exchange rate of US dollars as 40.40 peso for each dollar. Again it seems the peso is being devalued. I have CDs in pesos at Banco Leon and am contemplating cashing them all and and spending pesos before they go up to 50 to 1 US. Is anyone else contemplating any moves?
Maybe it's because I don't know what you mean by CDs but if you're living in the DR why would you be worried with the fact that the peso is worth less than the dollar. Only if you went to The States it would bother you right?

So if you know you're going to The States soon and you can live of a certain amount peso you've got now then I understand why you would want to exchange everything else.

:dead: As I was typing this, is what you mean that you want to exchange a lot of peso in to dollar now and later on you want to exchange them back to peso to make profit?

I'm confused.. CDs?
 

jinty05

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Feb 11, 2005
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I presume, correct me if I am wrong but you hold Certificates or Certificados which pay an enhanced rate of interest and are for a fixed period?

I have had a few of these that I have liquidated over the past year back into dollars. It is not a time to be holding large peso deposits.

I went on a currency converter and saw the current exchange rate of US dollars as 40.40 peso for each dollar. Again it seems the peso is being devalued. I have CDs in pesos at Banco Leon and am contemplating cashing them all and and spending pesos before they go up to 50 to 1 US. Is anyone else contemplating any moves?
 

curious29

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Sep 20, 2012
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CDs= savings afaik.

It would be still better to have USD as savings as the prices in pesos go up...while interest of savings account in peso won't go up with prices...thats my opinion....
 

curious29

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it would be really nice information, if the prices wouldn't go up by 25 % at the same time... most of the things here are imported...salaries will stay almost the same as always...so more desperation for local people :/
 

LTSteve

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First of all the Peso has been fluctuating between 38.75 and 40 per US dollar for the last year. The slight devalue is probably due to the budget problems and increased taxes just implemented by the DR government. One thing I don't understand and another person brought this up, if you are spending the pesos in the DR than why wouldn't you want the value to increase? If you are converting the Pesos back to dollars your thought process might make sense. If you are cashing in the CDs and taking the Pesos and spending them it makes no sense at this time.

LTSteve
 

frank12

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Sep 6, 2011
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STAY out of RD PESOS!
I like your thinking, but let's do a little math:

Lets say you have 4,000,000 (4 million pesos) at 10 percent interest, compounded monthly.

1. you will receive 400,000 a year as interest but under the new law, you will pay 10 percent tax on that interest or 40,000 pesos


2. you now have $360,000 a year in interest--not including it compounding monthly.


3. Still, your cautious. That's good. So am i (despite the way i drive). Let's say you stay on the sidelines...meanwhile, the pesos doesn't go to 50/1, which means you just lost out on $360,000 pesos in interest--more than that if you had let it compound monthly, or it goes to 50/1 and the compounded monthly interest has offset the decrease of the pesos value. You still got $360,000 pesos in interest. That pays the rent for one hell of a nice condo on the beach, or a car, or a new motorcycle every year, or a lot of eating out with a few girlfriends to accommodate you at your table.

I'm all for caution, and i strongly recommend people doing their homework, but the fact remains...$360,000 pesos a year--and this is even after you'v paid the $40,000 in taxes on interest to the government--is a hell of a lot more money than you're ever going to back in the USA.

Now tell me...how many meals does $360,000 pesos purchase? How much chocolate can that purchase a year? How many girlfriends will that accommodate on the weekends? How many new Beaver pelts to add to your collection? How many gallons of gas? How many teeth to help that effervescence smile? and how many inches to your manly tool to help reach hard to reach places?

Frank
 
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dropshort

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May 18, 2008
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If you understand the currency/exchange market $RD is DOP and not any of the acronyms made up on the fly.

If you want someone to understand what intend using the correct word, phrase or acronym is good start.
Other accepted acronyms are USD, CAD, EUR, GBP, CHF, AUD.....
 

Criss Colon

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"Frank", and "Others".
The best predictor of the Future, is the Past!!!!!!!!!!!!!!!!!!!!!
The claim has been made that the DR peso has "Fluctuated" against the US dollar" over the "last Year".
That's true, but the treand is "North", not "South"!
Let someone with more "computer skills" than I, like any 8 year old from the developed world!, post a graph of the Dominican peso, in relation to the US dollar, over the last 10 years.
Then lets see who wants to "hitch their financial future to the "PESO"???
Want some more help deciding where to put your money??
Today's "Listin Diario" SD news paper:
The DR now owes Venezuela OVER, 3 BILLION US dollars for it's "Fuel Bill"!!!!
Couple taht with yet another 3 Billion US,or more???, in "International Debt", and Billions of DR pesos in "Internal Debt"(money owed to banks and other institutions inside the DR) and you can make an educated guess where the "Peso" is headed!
"C'mon 50 to 1!!!!!" :bunny::bunny::bunny::bunny::bunny::bunny:
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
 
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frank12

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Sayanora,

Nice graph, brother!


Criss,
Yes, i agree with you Criss...it seems like a sure thing that the peso is heading south against the dollar...however, meanwhile, until it takes its nasty suicide jump off the bridge, why not sit back and enjoy the 10% interest? it buys a lot of coffee! it also buys a lot of coffee enemas.

And if the pesos continues it slow downward spiral into an abyss, the compounded monthly interest will offset the decrease in the pesos value, until at some point, the exchange rate will be too far gone to make it worthwhile at 10%. This happened in the past, so Central Bank simply upped the interest rate paid on CD's to the point where, at one point in 2005, they were paying 23% annually in order to offset the devaluation of the peso.

But look, i'm no math guru, nor am i qualified in yoga instruction or hair weaving. But i'm fairly good at Ginsu knife throwing. I'm also nearly illiterate, but look, i have a degree in hillbilly conversation and dialogue, and that must count for something?

I'm not even slightly educated in economics--i don't even know how to spell the word--but, meanwhile, i'll keep enjoying the 10% annual interest until at which point, it no longer makes economic sense and i'm left with a pile of worthless pesos to light my cigars with.

Frank
 

Criss Colon

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Thank you!
You are eiter an "8 Year Old From a developed country", or, a lot smarter than I.
Probably the latter!
Remove the "Hipolito Peak" of 2004, (I change US Dollars like a "Drunken Sailor"!!),and the trend is DR peso devaluation "vis a vi" the US dollar.
CC
 

frank12

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Frank, where do you buy the beaver pelts?
That's easy...you go where the Beaver live and congregate--usually near water--there, you set your traps and sit back and wait. You got to make the Beaver come to you, brother! That's the sign of an experienced Beaver trapper.

Frank--AKA--Dear ABBY
 
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