Banco Central

[Jacobb]

Does anyone know how Banco central is compounding. Is it monthly?

[gary short]

On cd's Banco Central does not compound interest. You have to have a DR bank account so that the BC can deposit your interest.

[zephyr1957]

Hi,

I have a term deposit in pesos. I have acquired it in january 2006 when the rate was 24% for fixed 2 year term. They deposit 2% at the beginning of each month in my dominican bank account.

The rate has lowered since to 21% for 2 1/2 years term but that can go higher or lower any time.

Peter

[zephyr1957]

Oops! my mistake > it s 20% for 2 years 1/2

[Snuffy]

Peso is at 32.5 now. By my observations and I could be wrong...During the holiday season it was as high as 35 or 36 and the central bank was offering a better rate. During the holiday season the economy needs more dollars in order to purchase product for the holidays...thus exchange rate goes up....and Central Bank needs more money thus rates go up. So if you time it right and exchange your dollars at the right time and lock in a high rate of return you can do very well. On the other hand you would not want to get in when the exchange rate is 30 to 1........and cash out when it is at 35 to 1....you can see that you would not fair so well. That is assuming you intend to exchange your pesos for dollars. On the other hand if you are not going to exchange pesos for dollars...then you may be fine. Not to long ago you got about 21% for 1 year. What is it now?

[shuffine]

DIRECT WINDOW

Certificates of Investment

Terms


Rates of
Interest
30 days 10.0%
90 days 11.0%
180 days 12.0%
365 days 14.0%


Certificates a
Fixed Term

Terms


Rates of
Interest
1 year 17.0%
1 ½ years 18.0%
2 ½ years 20.0%
More information

[mbramstedt]

can the interest be deposited in a checking or a saving account. My checking is with banco popular

[M.A.R.]

Can one open an account from the US with the BC, via phone or internet?? if not what documents do I need to open account there? thanks.

[gary short]

Originally Posted by mbramstedt

can the interest be deposited in a checking or a saving account. My checking is with banco popular

You have to give the Banco Central your DR bank account information in order for them to deposit your interest.

[gary short]

Originally Posted by M.A.R.

Can one open an account from the US with the BC, via phone or internet?? if not what documents do I need to open account there? thanks.

You would'nt be opening an account at the Banco Central you'd be purchasing a certificate, from the BC with cash in pesos (not recommended)
or with a certified cheque from your newly opened DR bank account. New account because the BC has to have your DR account number in order to deposit your interest. Every thing is in pesos.
I didn't have a problem opening an account with a passport only.
So after you open an account take a small stack of US bills and turn them into two wheelbarrels full of pesos and deposit in your account. Get a certified cheque made out to the bc. Then go to the bc and stand in line at 7:00am (go to the bathroom before lining up. Don't eat two bran muffins and don't drink three expressos after a night of heavy drinking before lining up).
Remember to take your hat off when the flag is being raised. Dear God please please hurry.
About 8:30ish prepare for the ensuing scrum when they give out numbers. Hey old lady get the hell out of the way I was here first you too old jerk with a cane.
9:00ish you're inside.Stupid old lady I'm ahead of you ha ha. Holy Jesus where's the can? They called my number, they called my number. Mother Mary I'm hyperventilating.



Boy that wasn't bad...............you should be out by 3ish.



I hope that was helpfull. Good luck.