Quote:
Originally Posted by Ecuadog
I think you're talking solely about foreign stocks, bonds and funds. I don't see other financial interests, such as CDs, being exposed to CURRENCY fluctuations in a country that uses the US dollar as its official currency.
|
Quote:
Originally Posted by CoachKandSportsguy
True, but the list is pretty small and the countries are pretty small.
...
There are many other countries which peg/fix their local currency to the US dollar, however those pegs can be broken, and are subject to the whims of the foreign government, and crashing economies.
|
It's not the size of the country that matters, but the stability of the issuing entity, e.g bank or credit union, that matters.
I am not talking about countries that peg/fix their local currency to the US dollar. I am talking about countries that have adopted the US dollar as their official currency.
The OP inquired about investing in CDs in foreign countries. I don't invest overseas because I like to keep life simple. However, I have looked into it, specifically in Ecuador, where the official currency is the US dollar.
In January of this year, Banco Diners Club of Ecuador was issuing 1-year CDs that returned 7.20%, in US dollars. It's probably higher now. I imagine that the hoops that one has to jump through in order to qualify are complicated. I wonder about Puerto Rico or the Virgin Islands.