Warning!!!!! Take your dollars out of the bank.

[XanaduRanch]

My first impression would be NO. I am not even sure if CITIBANK is immune from this. I mean if the government says no bank here shall give dollars, who could argue? Does it matter where the bank is based? I really don't think so. As long as it is on Dominican soil it isripe to be raped by old Baldy.

Tom (aka XR)

 

[Chirimoya]

I asked this question about Citibank some months back and it was explained to me. Don't think Scotia Bank is any different. I finally withdrew my dollars last week with no fuss.

Chiri

 

[bochinche]

I think that it is "EXTREMELY LIKELY" that the government would confiscate the dollars and possibly not even give 100% of that in Pesos when they do it. What the hell do you think they will do when they can't get anymore of these silly loans that won't be paid back and the oil and gas runs out? They will need dollars to pay for more oil or else the country will come to a standstill. This will be desperate times and they will do what they have to to stop the people from starting a mutiny. Or maybe you think Xanadu will pull that out of his ass just like he did the Xanadu Stables and Xanadu City?

....nobody will confiscate your dollars or even freeze your accounts. the dollar accounts will simply be converted to pesos at a specially selected rate.

....i don't know, you will be accusing this government of stealing next.

oh and don't forget......don't be fooled by international names like scotiabank or citibank - they have to abide to local law and in fact are more or less independent of branches in canada or the states (or wherever).

 

[D & D]

Holy Hamhocks!

Reading all this is really and truly scary. The banks tell us one thing (no problemo, not gonna happen, your dollars are safe, no peso conversion, etc.) and then we keep watching the boards for a more informed view.

Does anyone have any insider information on what is actually going to happen (name specific banks) and if so, what's the time frame? No friend of a friend heard type rumors, but factual knowledge.

What would be the impact of dollar accounts being nationalized and converted to pesos. Aside from the obvious of a lot of pissed off people, what recourse would there be, if any? What about free zone companies, large businesses, resorts, etc.? Is any of this being reported in the states or other countries? I know there are board members sending e-mails to news organizations concerning the elections, but what about this?

The power outages and fuel shortages for generators has to have an impact on the tourist industry. Yet, we hear nothing on the news (stateside) about any of it. Could it be that the DR going down the tubes isn't newsworthy? Who really cares other than the people who live or have businesses here?

What's the effect, again if any, on property values? How can the price of property keep going up when it appears it's going to be almost impossible to be able to live here regardless of your income. If the goods and services are unavailable, it won't matter what kind of money you have. You can't buy what doesn't exist.

The statement that XR made about making sure he has the families passports in order is very disturbing. Is anyone else really thinking of leaving, or was that an exaggeration? I don't know about anyone else, but it would be extremely difficult for us to abandon what we have here and start over elsewhere. Let's face it, if things are so bad that ex-pats start moving out, then a lot of people would be in very deep $hit.

It also seems that break-ins and other forms of personal theft are on the rise. Do we need to circle the wagons and beef up security as election time draws near? People are becoming desperate, and some of them need very little in the way of an excuse to try and take what they want from the perceived ?haves?. Judging from past elections, it?s not exactly an organized event at the best of times, but this one is shaping up to be (if reports are to be believed) nothing more than an armed country wide riot.

I realize that no one has a crystal ball, but I am still trying to find answers these questions and to address these very real concerns.

Dianne

 

[Tony C]

That stench you smell is from that dead horse I have been flogging!!!!

For years now I have said that you should get your money out of the DR. I was there in the 80's during the PRD's reign and I new that Hippo and his Chopo Party people would be worse. I quicky liquidated my assets in the DR and I am happy for it.

Anybody who has more than a few Hundred $ US in a Dominican Bank at this time is just plain stupid!

BTW All you people who think that by investing in Real Estate in the DR you are immune..........The bubble is pressing against the thorns!!!!!

 

[Adrian Bye]

D&D: this is a market. Nobody can know what will happen in this situation. Anything posted here is just rumour and speculation.

Its possible they won't dollarize accounts, because there will be little gain (most of the USD has already left the country). But then again, we're being shown time and time again that this government will do even the craziest things.

Bottom line: Yes, there is a significant possibility your USD could be converted to pesos at an unfavorable rate (20% - 50% under market). Can you afford the risk?

If so, don't worry. If you can't, you need to do something about it.

 

[rmary]

Scotiabank

Just a brief comment about Scotiabank. When we were in Cabarete for two weeks in December, we tried several times to widthdraw money from either their ATM or inside. We never were able to get anything, so I doubt that this would be a good place to put your funds.

Rose

 

[AlaninDR]

What's a person gotta do for some action around this country? Patiently I wait for the sky to fall but it's still up there. The govt hasn't taken my dollar accounts. My property investments haven't collapsed nor have they been taxed into oblivion. No gunfire to my knowledge. Truck has 3/4 tank of diesel. I never been robbed and was last cheated over a year ago.
Only two alternatives that I see are (1) go back to Russia and watch Vladimir turn cars over with his bare hands after his morning breakfast of a pint of vodka or (2) take a night time drive on some of these sorry ass DR roads dodging pot holes, pedestrians, unlighted cars and livestock. Just checked the weather in Russia, -14c so first option is out. No death wish here so second option is out. Guess i'll play cards online and continue waiting for the sky to fall or another boob report. Afterall, it's 75f here in Sosua with a partly cloudy, partly sunny chance of thunderstorms forecast and more of the same to come.
I really need something to worry about.

 

[Simon & Nicky]

I take it that you are all aware of the "runs" suffered by European (and American)? banks in the past? One horse town mentality and rumour mongering have brought down far more prestigeous banks than some tin-pot peso bank in the DR. You are perpetrating your own downfall. The most easy example to draw on is the UK fuel crisis last year. In the UK we suck oil out of the ground and yet if we all go to fill up our tanks at the same time - no fuel for a week! Now I'm not saying dont do anything its probably too late but hows this for a rumour?

My "friends brother" tells me that the president is going to retire this weekend and has decreed free Presidente's and a national holiday for everyone. - Spread that one around and by the weekend he will be gone!

 

[MerengueDutchie]

D&D it?s a matter of

supply and demand.

The interest of Hippo is to get re-elected so he can continue to pillage the country for another four years. In order to do so, he must be seen as creating a (temporary) solution to the electricity problems people are experiencing.

For this he needs dollars!

He must also avoid default on his dollar notes (he can perpetuate the pesos cycle at will by printing more inorganicos) in order to keep getting more loans.

For this he needs dollars!

Currently he lacks sufficient dollars and in his mindset the dollars in private accounts are not doing him any good (they are the property of individuals who don?t help him) so he will have no qualms putting them to good use (i.e. paying for fuel) in what no doubt will be called a sacrifise for the nation.

Any dollars left in Domenican accounts will be converted to pesos at an unfavorable rate (the rate actually doesn?t matter since you can hardly exchange pesos to any outside currency anymore) in the near future.

Don?t think it cannot be done, just look at Ecuador and Argentina!

Next he will start taxing property!

MD

 

[Formosano2000]

Re: Holy Hamhocks!

What would be the impact of dollar accounts being nationalized and converted to pesos. Aside from the obvious of a lot of pissed off people, what recourse would there be, if any? What about free zone companies, large businesses, resorts, etc.?
Dianne

It's safe to assume that these dollar-generating entities do not receive or keep their US$ in DR. Remember, most of their clientele are located in the US/Europe who simply wire/deposit payment into these entities' bank accounts abroad, not in DR.

Sure there are a few exceptions, such as the odd-ball walk-up tourists who pay US$ upon check-in or domestic buyers of Free Zone products. But these are insignificant.

 

[Formosano2000]

Argentina. Enough said !

ONE BIG stupid question????

Do any of you think that US$ in Scotiabank are safe from being nationalized???

I closed my Banco Popular accounts and moved everything to Scotiabank. Was that a bad move??

Texas Bill

I was a tourist in Argentina in Dec/2001 when all hell broke loose there.

Anybody who kept US$/AR$ account within Argentina, locals or foreigners alike, was subject to "corralito" that capped weekly withdrawal at US$300 a week even if you had millions in the account.

The situation got so bad at one point that "feriados bancarios" were declared which forced all banks to shut their door for one full week. During these period, only pensioners could go in to collect payment (usuallly after 4-5 hours of wait). No other transactions were accepted. Not even when you walk in to change US$ into AR$.

I was able to freely withdraw Argentine peso from ATM's because I have US$ account in the US while locals had to depend on cash stuffed under their mattresses unless they had money abroad.

Many stores refused to take credit cards for fear of bank non-payment or tagged on steep surcharges on credit cards.

Then in Jan/2002, Argentine peso was freely floated for the first time since early 1990's.

Result: Argentine peso fell from US$1=AR$1 to US$1=AR$4 within 5 months before stablizing at US$1=AR$2.90 that has more or less held to this day.

See: http://finance.yahoo.com/m5?s=USD&t=ARS&a=1&c=3

As a prime exporter of beef, ironically Argentina started to have trouble feeding its own people and reports trickled from the interior (poorer regions) that people were literally starving to death and many kids were severely underfed. I later read articles in New York Times that confirmed these reports. Local media, though, largely kept quiet on this.

In mid-2002, half of Argentina's 36 million population was officially declared to live under poverty line and the unemployment exceeded 20%.

I shudder to think what fate will befall this pretty island given the grim Argentine precedents.

 

[Formosano2000]

Smart move

I asked this question about Citibank some months back and it was explained to me. Don't think Scotia Bank is any different. I finally withdrew my dollars last week with no fuss.

Chiri

You are ahead of 99% of the Argentines who had money in CitiBank and ScotiaBank when "corralito" hit.

Argentines who held US$ deposts in both banks had them forcefully converted to pesos by Argentine goverment decree. These depositors filed lawsuits in New York claiming that the global headquarters needed to assume the ability and compensate their loss.

The couts said "tough luck, go blame the Argentine goverment"

No money was ever refunded.

For your information, Scotiabank no longer exists in Argentina. They pulled out soon after the peso devalued. So did Bank of Boston.

 

[Pib]

I am very weary of "the sky is falling" theories, but this is not far from the realm of possibilities. Remember that this is a populist government that time and time again has partly blamed the business community of causing the downfall of the Dominican economy, when in reality they have given more support to him than I would have expected (see Venezuela).

As Hippo presents it, this is the war between the rich and the poor. And who has US$ accounts in the DR? "Obviously the rich". Forget about the tens of thousands of middle class people that saw the US$ as its last recourse. In the mind of a guy selling platanos he can't make the distinction between the rich and the office clerk who, against all hope, saved his/her a$$ off in the hope to save something during this crisis.

Hipo will say to 99.9999% of Dominicans "these people caused the xrate to go up, they are to blame". 99.999% will believe him. And the middle class will pay. Again.

 

[Texas Bill]

Pib;

Will they believe Hippo because they haven't been reading the papers, making intelligent judgements on their own, etc., etc., etc???;;Or, because they MUST have someone other than themselves to blame for allowing the situation to fall as low as it has because their Presidente has blown things out of proportion? It seems to me that the true problem lies in the rhelm of an inadequate educationsl background wherein the "teachers(?)" have not done their jobs as they should. Since I know you to be a very intelligent Lady who has been educated beyond the 'norm' in the DR, I ask these questions knowing you will answer truthfully and completely.

Texas Bill

 

[Gringo]

I hate this thought but any change that if they close branches and seize account they could also not let you into the bank to get your money from the safety box?

Just a horrible thought, sorry.

Can someone answer her question about Safety Deposit Box's

I have a few bucks in Scotia's Box as well...

 

[gmiller261]

"Doom and Gloomers" You make a run on the banks for USD and all that will be is "self full filling prophecy".

I get the impression that most posts here are not even by adults. Yes, ?do not put all you eggs in one basket?, OK. That holds true for even in the US.

I can only hope the DR has provided you with ?things? that you wanted and needed; If not leave. You should have known what you were getting into. (As so many of your posts announce).

I do not feel anyone should be stressed at financial issues. But, if you are suggesting taking my USD out of their banks and causing more of a problem for the people who do not even have USD. I say quit being so selfish.

You sound like the ?shorters? to the US equity market in the late 90?s. They lost their shirts until the bubble did burst in the late 00. Then we had to hear how righteous they were.

Be concerned, but use you head.

On the Argentina issue which someone poo poo?ed me for just giving statistics. By the way, if you can?t see a correlation (or lack there of) it wasn?t for you.

Argentina
* 39 MM people.
* Revenues: $44 billion
* Expenditures: $48 billion
* GDP ? real growth -10.9% (2002 est.)

Dominican Republic
* 9 MM people.
* Revenues: $2.9 billion
* Expenditures: $3.2 billion
* GDP ? real growth 4.1% (2002 est.)


Oh yes and thanks for the ?student of the obvious? reply; ?but last year there was 40% inflation?. My peso account made that quite obvious. Imagine the poor Dominican with only pesos.

 

[getonwithit]

But, if you are suggesting taking my USD out of their banks and causing more of a problem for the people who do not even have USD. I say quit being so selfish.

........my dad says you are a wally.

getonwithit
6 and 3/4 years old.

 

[Pib]

gmiller

I am Dominican. If you want to donate your money to the DR I suggest you put me top on the list. I can use a few bucks.

That been said (and hopefully accepted) I see no reason to not protect the wellbeing of my family. I don't think any of our politicians will take my husband and I to their homes and give us shelter and food because we decided, in the best interest of the nation, to not listen to the signals and leave our money in the local banks.

You are VERY, VERY, wrong about your "self-fulfilling" theory in this case. Look at posts from 2 years back, some were still defending the strenght of the Dominican banking system back them. Myself included. I seriously understimated the capacity of this government to screw up our economy. I paid dearly for that. Not again.

I didn't vote him in. I have voted in every election to take them out. I will even make personal sacrifices to be able to vote this time, and REST ASSURE I will vote against him again. That is as much as I am willing to do for this nation. Donate my money? NO FRIGGING WAY!

 

[Criss Colon]

Dear Gary,your firstbpost on DR1 was last dec.30

You asked if there was a way for you to transfer an your annuity to an "Investment Vehicle"in the DR.
Who the hell is your investment advisor?Emperor Nero?(The "Fiddle" guy!)
And if you try and compare Argentina and the DR you are really "stretching" it!Open your eyes,The DR is one step out of Africa!

Yes I love it here,and am raising 4 children here! But get real pal,this country is on the slippery slope into anarchy!!!

I have lived here continuously for the last 8 and a half years.Others who believe as I do have lived here longer,and people like "Pib"their entire lives.We CAN see the difference

To put it kindly,and therefore bluntly,"You don't have a clue to life,or what is going on in the DR!

Anyone wwho is still telling people to "Look at the Bright Side" is doing a diservice to the readers on DR1! It was only a little over a year ago that "Moody's"Bear Stearns' the world Bank,Imf'and others who don't live here,or raed DR1,were touting the Bonds being sold by the DR! The cocsensus here was that buying DR Bonds was a disaster!

You decide who was right.Maybe watching your house on the North Shore lose 1/2 it's value has clouded your vision.You are sounding like the guys who "hype" their stock on message boards all over the internet trying to increase it's price!

I have nothing against you,I don't know you! I just hate seeing misinformation being passed along!

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