Invest in certificate in dr banks

[Virgo]

I have never heard of ANY financial adviser, stock broker or wealth management expert suggest placing money in the D.R as part of a sound well balanced portfolio. There are way too many other sound and secure instruments available to put your money into to even remotely consider the D.R. ..as stated day to day money for incidentals only.

That is Financial bigotry.

It is NOT placing money in the DR. It is placing money in a specific bank which happens to be based in the DR.

But since you asked, there definitely ARE financial advisers who do advise "placing money in the D.R as part of a sound well balanced portfolio".

How do I know?
Because the DR sovereign bonds have been selling quite well, and they have been honored regularly.

 

[playacaribe2]

Do you actually read what YOU write? Aren't you saying that the CENTRAL BANK ASKS the banks and exchange houses for THEIR rates?

Why on earth would the Central Bank ask the banks for their buy/sell rates IF IT WAS THE CENTRAL BANK who told them the rates to begin with?

You can call up the exchange rate on the peso from the Central Bank website or elsewhere. That final exchange rate is an aggregate average of the allowable range as established by the Central Bank. It would make no sense to call up a chart for April 1, 2016 and have various bank and cambio rates all mixed in.....so they are aggregated/averaged for historical record.

Going forward, the Central Bank issues its buy/sell range in a letter posted on their site and forwarded to all banks and cambios. Again they are ranges, established by the Central Bank and those banks and cambios must abide by them. There are obvious small differences within a range between banks and cambios .....and perhaps that is your reason for continuing to insist that the market sets the rate.

But according to the law, the Central Bank sets the rate....NOT the banks/cambios.

Only the Central Bank knows when it needs to increase the rate to attract dollars for an upcoming payment on its international debt obligations, not the marketplace.....or when it is flush with dollars....and then strengthen the peso against the dollar. This is not and cannot be done by the banks or cambios.

Again, if you have a citation that the marketplace actually sets the peso rate in the DR, or the Monetary Law I posted has been overruled or replaced.....please post it.....otherwise you are just arguing....without facts


Respectfully,
Playacaribe2

 

[Virgo]

You can call up the exchange rate on the peso from the Central Bank website or elsewhere. That final exchange rate is an aggregate average of the allowable range as established by the Central Bank. It would make no sense to call up a chart for April 1, 2016 and have various bank and cambio rates all mixed in.....so they are aggregated/averaged for historical record.

Going forward, the Central Bank issues its buy/sell range in a letter posted on their site and forwarded to all banks and cambios. Again they are ranges, established by the Central Bank and those banks and cambios must abide by them. There are obvious small differences within a range between banks and cambios .....and perhaps that is your reason for continuing to insist that the market sets the rate.

But according to the law, the Central Bank sets the rate....NOT the banks/cambios.

Only the Central Bank knows when it needs to increase the rate to attract dollars for an upcoming payment on its international debt obligations, not the marketplace.....or when it is flush with dollars....and then strengthen the peso against the dollar. This is not and cannot be done by the banks or cambios.

Again, if you have a citation that the marketplace actually sets the peso rate in the DR, or the Monetary Law I posted has been overruled or replaced.....please post it.....otherwise you are just arguing....without facts

Except that the letter (which you yourself posted) makes NO mention whatsoever of ANY range. It gives one very specific buying rate, and another selling rate.

As explained, if the letter meant what you think, it would make ZERO sense for the CB to compile averages since each transaction would be made at the mandated rate (from the previous day).

I already told you what the letter you posted actually says. That is the best evidence I can think of.

The law does not MANDATE that the CB sets foreign exchange rates, although it may ALLOW it to do so.

It has been AGES since the government has mandated the buy/sell foreign exchange rates. You can probably go back as far as Antonio Guzman's government (78-82), but possibly even earlier., into Balaguer first governments.

The CB has other mechanism that allows it to INDIRECTLY affect the rates. For example, using the printing press as a cheap way to get money (as opposed to taxes) surely increases the USD/DOP rate (weakens the DOP) which is what happens during Mejia's regime.

 

[pauleast]

That is Financial bigotry.

It is NOT placing money in the DR. It is placing money in a specific bank which happens to be based in the DR.

But since you asked, there definitely ARE financial advisers who do advise "placing money in the D.R as part of a sound well balanced portfolio".

How do I know?
Because the DR sovereign bonds have been selling quite well, and they have been honored regularly.

I would rather be guilty of " financial bigotry" than financial stupidity. You put your money in a D.R bank and complicate your taxes and peace of mind. It makes almost no sense if you are an x-pat like everyone here.

 

[playacaribe2]

The law does not MANDATE that the CB sets foreign exchange rates, although it may ALLOW it to do so.

I will be sure to pass that along to my wife's tio. All these years the Central Bank has been telling him and the bank what the exchange rate range will be.

Enjoy your evening.....and Thanks....lol


Respectfully,
Playacaribe2

 

[Virgo]

I would rather be guilty of " financial bigotry" than financial stupidity. You put your money in a D.R bank and complicate your taxes and peace of mind. It makes almost no sense if you are an x-pat like everyone here.

The bigotry lies in lumping together all Dominican banks regardless of their actual performance.

Earning a yield that even after devaluation is nearly 20 times higher than you would otherwise get could be a sufficiently powerful incentive to take a marginally higher risk and some possibly minor complications.

No need for stupidity.

 

[Bronxboy]

Another one bites the dust.

Was moving to Off Topic but I will let you guys take of that by opening up a new thread if you want to continue this battle.

Good night!!!!

Virgo, what can I say. Every thread you touch turns to "fill in the blank".

 

[Robert]

Let the thread run, it will fix itself or I will delete accounts, one of the other.

 

[Jumbo]

Now that the exchange rate is solved is there a link to the interest rates offered by the banks in the DR and options one may have in planting some money in them. Thank you

 

[rogerramjet1]

DO NOT trust this country and the people to manage your money...JUST DON'T

 

[j&t's future]

Banco Central PESO CD's via Banco Popular as of today!

1 Year CD =7.25%, 2 Years CD = 7.5%, 3 Years CD = 8.25%, 4 Years CD = 8.5%, 5 Years CD = 8.75%, 6 Years CD = 9%, 7 Years CD = 9.25%

 

[dom]

santa cruz pays close to 8 for 1 year in peso

 

[CNSIERRA]

Hi Derfish I think that your numbers are wrong. Here you will find the rates for the Dollar in 2012 which stays that it was from January 2012
38.8662 and today is at 45.9702 so it has going up just 7.11RD so you would had lost 7.11RD on each dollar in the past 5 and half
years. Now had your changed your Dollars into pesos and gotten a 5 CD with Banco Central, DGII or another government entity
at 14.95% per year you would gotten a lot more money. This is an example 20K X 38.86RD is equal to 777,200RD at 14.95RD per
year is equal to 116,191.40RD on interest per year X 5 is equal to 580,957.00RD interest generated in 5 years. So if 5 years with
the devaluation money you would it had lost 142,200.00RD. So if we do the numbers right. You lost 142,200.00RD by the devaluation but had made
580,957.00RD which would leave you with a positive balance of 438,757.00RD or 9,544.42USD in profit in just 5 years and on just
20,000.00USD. So I say to the poster to investigate and invest on the Central bank CDs. I am doing it myself. Here is the link
So do the math. http://www.bancentral.gov.do/estadisticas_economicas/mercado_cambiario/