- Thread starter mondongo
- Start date
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Euro Exchange Rate
I suspect this to be in error. The current EUR/DOP rate on the open market is 23.42 and USD/DOP 21.45. If the DR central Bank fixed the DOP to any major curreny, the DOP would trade at an appropriate fixed rate on all the other major Currencies based on the EUR.
Some countries such (i.e Malaysia and Hong Kong) have their curencies fixed against the US.
FX is big business and if the USD/DOP rate floated but the EUR/DOP rate were fixed some clever trader wouild have already benefited.
Some countries such (i.e Malaysia and Hong Kong) have their curencies fixed against the US.
FX is big business and if the USD/DOP rate floated but the EUR/DOP rate were fixed some clever trader wouild have already benefited.
The scenario you guys bring up is exactly what I wonder about. Can the average person actually buy the EURO for 17.5? If this is the case, then there is a major profit opportunity. Since Ken can vouch for a rate of 22+ in Sosua, does anyone have first hand knowledge of the rate in Sto Domingo?
"Free" money simply doesn't happen...
the market is much too efficient.
It is theoretically possible that the banks ONLY PAY 17.50 for euros (they wouldn't have any customers), but it is a safe bet that they will not sell them for less than the market price of 23.42 or whatever (plus a markup of course).
I've only once seen a situation like the one described by Ken. It was on a small scale, involving only 1 bank, and was available only to its own account holders, for 1 day, and for only $50 to exchange. The rate they could get would be only 10% above market. In other words, if everyone took the offer, which few did because they had better things to do, they would only have made $5. Maybe the bank had a guilty conscience already and figured that they owed $5 to everybody but couldn't quite bring themselves to simply give it back to them.
Thanks for the info Ken and Golo - I always welcome information. If you really believe what you say is true, you should be flying back and forth right now doing it - and don't tell anybody else.
The free market is incredibly smart.
the market is much too efficient.
It is theoretically possible that the banks ONLY PAY 17.50 for euros (they wouldn't have any customers), but it is a safe bet that they will not sell them for less than the market price of 23.42 or whatever (plus a markup of course).
I've only once seen a situation like the one described by Ken. It was on a small scale, involving only 1 bank, and was available only to its own account holders, for 1 day, and for only $50 to exchange. The rate they could get would be only 10% above market. In other words, if everyone took the offer, which few did because they had better things to do, they would only have made $5. Maybe the bank had a guilty conscience already and figured that they owed $5 to everybody but couldn't quite bring themselves to simply give it back to them.
Thanks for the info Ken and Golo - I always welcome information. If you really believe what you say is true, you should be flying back and forth right now doing it - and don't tell anybody else.
The free market is incredibly smart.
Ken your post doesn't indicate free money.
You only say what is being "paid" for euros and dollars - nothing about the other side of the transaction.
Why would anybody want to "sell" euros or dollars to the bank anyway (for pesos)?
I suspect that you made a typo.
You only say what is being "paid" for euros and dollars - nothing about the other side of the transaction.
Why would anybody want to "sell" euros or dollars to the bank anyway (for pesos)?
I suspect that you made a typo.
Bank? Typo? Why do you keep talking about banks, andy a? I am talking about the exchange banks that are located on the main street of Sosua.
I have no idea what Banco Popular and the other "regular" banks are doing. Whatever it is, it is less than what the money changers are offering.
What I am talking about, andy a, is what is on the signs today in Sosua. If I am a tourist and arriving with Euros in my pocket, I can take them to one of these money exchange banks and get RD$22.50 for each Euro.
I have no idea what Banco Popular and the other "regular" banks are doing. Whatever it is, it is less than what the money changers are offering.
What I am talking about, andy a, is what is on the signs today in Sosua. If I am a tourist and arriving with Euros in my pocket, I can take them to one of these money exchange banks and get RD$22.50 for each Euro.
Sorry, I was wrong about the "typo".
But I believe the point in this thread is that free money is being dished out, and your post doesn't support that. By the way, I did not mention Banco Popular or "regular" banks.
If the central rate for the euro is 23.42, then for one to receive 22.50 is in fact a loss of almost 4% already. There will surely be further slippage when he tries to "cash it in". Where is the profit?
My point is that the market is infinitely smart and that it can't be beaten from a bank, casa de cambio, moneychanger, or even by dealing with a little old lady who keeps the money under her mattress (unless you're lucky enough to find a very stupid one).
The only way I have ever found to profit from an investment is to make a decision, take a position, and WAIT for my judgment to be proven right (not guaranteed).
But I believe the point in this thread is that free money is being dished out, and your post doesn't support that. By the way, I did not mention Banco Popular or "regular" banks.
If the central rate for the euro is 23.42, then for one to receive 22.50 is in fact a loss of almost 4% already. There will surely be further slippage when he tries to "cash it in". Where is the profit?
My point is that the market is infinitely smart and that it can't be beaten from a bank, casa de cambio, moneychanger, or even by dealing with a little old lady who keeps the money under her mattress (unless you're lucky enough to find a very stupid one).
The only way I have ever found to profit from an investment is to make a decision, take a position, and WAIT for my judgment to be proven right (not guaranteed).
Believe it or not
Someone or many people highly organized have been making a killing with the Euro. Yes it is a fact that some tourists are smart enough to sell their euros for the best exchange in the streets. But most were taken for fools with the official $17.80 rate. And one euro here and an euro there make up for lots of money.
Now with the Euro selling higher than the dollar for the first time, those who bought it for the official rate are fast millionaires. Just the question I was trying to bring about in my previous post.
TW
Someone or many people highly organized have been making a killing with the Euro. Yes it is a fact that some tourists are smart enough to sell their euros for the best exchange in the streets. But most were taken for fools with the official $17.80 rate. And one euro here and an euro there make up for lots of money.
Now with the Euro selling higher than the dollar for the first time, those who bought it for the official rate are fast millionaires. Just the question I was trying to bring about in my previous post.
TW