About certificate in Banco popular

[Astral]

HI there !

In my last travel, I went there and they told me about buy a certificate in Pesos and to have between 19 and 22% interest rate ? It seems good ?
Of course I wait the elections. But certificate in a bank seems to be safe ? no ?

Is anybody has something to say about it ?

[JAMIE]

Yes, if you think only from the interest on the CD. I don't know if there are any other countries paying the CD's interest rate at 20-24% or even more such as the the Central Bank's paying 36% last year, 50% this year.

Because you have to deposit in Pesos, either you exchange the pesos from US Dollars or from Euros/other currencies. Remember one critical thing: The Peso is depreciated at the rate of the speed much more than the interest rate you can get. It means that you "MAY/ WILL" lose the equivalent value of the money you deposit in the bank in the future.

Think well before you jump into the CD.

Jamie

[ricktoronto]

Originally Posted by Astral

HI there !
But certificate in a bank seems to be safe ? no ?

Is anybody has something to say about it ?

There is all the advice you need right now to the two questions, for peso denominated anything.

[gringo in dr]

If you are making 50% in pesos and the peso devalues by 100%, what have you gained?

[JAMIE]

Originally Posted by gringo in dr

If you are making 50% in pesos and the peso devalues by 100%, what have you gained?

Let's see the election result, now these days, all places have no dollars for sale, everyone is freezing the dollars and wants to see who is the new president in DR.

It seems will be a chaos for sometime (how long? God knows) regardless who is the winner. If H wins, he knows he has 4 more years, he will start to let the pesos devalued again.

If F wins, H also will let the pesos devalued, and cash out as many as US$, because H only has 3 more months until Aug. Then, F needs to clean the big mess.

[gringo in dr]

Originally Posted by JAMIE

Let's see the election result, now these days, all places have no dollars for sale, everyone is freezing the dollars and wants to see who is the new president in DR.

It seems will be a chaos for sometime (how long? God knows) regardless who is the winner. If H wins, he knows he has 4 more years, he will start to let the pesos devalued again.

If F wins, H also will let the pesos devalued, and cash out as many as US$, because H only has 3 more months until Aug. Then, F needs to clean the big mess.

At it's current rate, the peso is already over valued. That is why you can't buy dollars. Supply and demand. Because the peso is over valued they loose stand to loose money by selling USD.