Advice on where to Invest $1,000,000 RD?

I live in the DR and have $1,000,000 Pesos that I would like to invest, please advise on the best place to put this money?
Please no Sanki jokes...

First convert it to US$ ASAP. There is serious talk of a devaluation of the peso to RD 20 per dollar. It may not stop there. Ignore anyone who wants you to invest it in the DR. They are desperate for people in your situation.

Next invest it in your home country through a reliable bank or investment firm.

Nice Canadian Guy looking for wealthy Dominican Republic Woman.

Just Joking......

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I am moving to DR in a couple of months and I am looking for investment opportunities. A small business that I can start from scratch and build it up, so I can relate.

Why are so many people negative about setting up in the DR.

I have lived in Calgary, Canada all my life and I can't stand it here.

You want to start a business and you have to go through 10 feet of bureaucratic bull****, development permits, zoning restrictions, 15 types of taxes - Business tax, property tax, GST, school tax and on and on... Not to mention employee deductions for health care, worker compensation, etc...

I have seen more people take $100 000 and lose it in Canada than anywhere else. Many asian investors who came here in the 80's and 90's lost fortunes believing that because we have strong legal system that they would make money. Most I knew went back to Hong Kong where they could make real money.

The reason people lose money is because they fail to research their investment ideas and have an effective business plan.

Good planning with minimal government red tape and minimal government taxes will be your advantage.

GOOD LUCK.

To my knowledge Banco Osaka still gives you the most interest.
Ask there for details.
Last year in June, the RD$ was predicted to be at 18 to the US$ by the end of last year...
However the exchange rate hasn't changed since then.
The RD$ isn't as bad as everybody says or maybe wants.

You'd better listen to Anny Mosity or soon you won't be a millionaire. A friend of mine didn't listen when the peso to the dollar was at 5 to 1. today his 100k dollars is worth about 8K.

How many decades ago was that?

100k US$ put on the bank 4 years ago in RD$ is now 200k US$.
Why would you refuse to see this?

Go to www.mojadasa.com -----present interest rates on US investments yield anywhere from 1-4% a month depending on the length of the term and the amount invested--you would qualify for 4% for either a 5 or 10 yr term
However, under no circumstances will your money be returned prior to the expiration of the term.

good investing

I agree with Anny; if you can, you should turn the money into US dollars as your first step.

Regardless of what Gerd says, I think the potential for devaluation is great. For one thing, the present administration has borrowed a tremendous amount of money--equal in one year, according to a Dr1 news item last week, to amount borrowed in four years by previous administration.

Secondly, the tourism industry is in trouble. Reason most often given is that rates are too high since they are pegged to the dollar. This was given by those in government proposing to let peso float, estimating that it would end up about 20 to 1, thus making the DR more attractive to foreign tourists.

To postings about how many decades have passed since there was a significant change in value of peso, I can only look at my own experience. When I arrived in the Dominican Republic in 1986, the rate of exchange was RD$2.50/2.75 to US$1. True that wasn't yesterday, but there have been a lot of devaluations.

The time to exchange your money to dollars, if you can, is now. It will never be worth more.

Regarding putting your money in a dollar account in the DR, my attorney has always advised caution. He points out that if the government gets in serious trouble with respect to foreign exchange reserves that these accounts could be frozen for the emergency. This doesn't mean you would lose the money; eventually you'd be able to get it. But who knows how long you would have to wait for the government to get its financial house in order.

USDollar checking accounts at Banco Osaka pay a minumum of 3.5% interest. Not sure why anyone would go for a 1-4% return on $1million RD, especially with a 5-10yr locked in term deposit.

a $10kUSD 3 month term earns 5% per annum, paid monthly. Dominican Peso investments pay 2 to 3 times the rates that USD investments (with the banks) do, but you are then exposed to the peso..not sure what kind of risk take you are, but we just flipped all of our savings here on the island to USDollars! With as much money you are talking about, even in a USD investment you should be able to get double digit returns with some kind of CD.

Have fun on the island!
marc

Of course I agree that you shouldn't leave such an amount in a checking account.

You'll get 17% on "Certificados Financieros RD$"
These start with a 30 day deposit.

Interest is paid monthly (17% divided by 12) and can be left for capitalization.

Still doesn't make sense?

For more information go to the bank and speak with someone in charge.
I'm not getting commission for it.