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$ 25 to $ 1
Tony C and others
What specific strategies are you using to compensate for the devaluation?
In my case I am just mixing half and half pesos and dollars and increasing my dollar portfolio as I get dollars coming in and buying as I find them. Interest rates on peso CDs continue to be higher and as the dollar goes higher, they compensate each other. On the other hand also continuing to keep real estate properties from the market and just letting them sit, while getting devaluated rent income. The increase in cement and construction materials are only making real estate holdings much more valuable and that offsets your loss in rental income. Yet with renewals and cost-of living increases in rental contracts, recovery will come.
In addition, if you have a good car, don't sell it. Your car's used car price just went up, but new ones just went thru the roof. I also find these new cars are not as attractive as they used to be whenever the model year came. They all look the same and manufacturers are changing their style so often, it doesn't make sense to invest the cost of a condo on an accident on wheels. BMW and Mercedes change their sheetmetal so often that their two year old cars look like 10 year old models. Yet they cost more than houses. On the other hand, some American cars that were introduced in 1995 have just minor changes and are still up-to-date.
House electronic components are holding their price. The increase is not hitting this market so bad. But even then, I would not change any electronic equipment. Just use it till it dies. The new technology doesn't make them any better than what you have right now, and you risk the damage of power surges anyway.
Even I am staying away from shopping for clothes, even though most designer boutiques are offering 50-75% discounts now. If you go to Diamond, Bella Vista and Acropolis Mall they are practicly giving away their stock. You can find those fashionable striped shirts that were $1200 for $700. But I am not tempted. My old designer clothes look better and are made of better quality and some of my 10 to 20 year old fashions are coming back strong. The bohemian look is in. Jackets are in. Leather and wool jackets are specially in and you got to see the prices.
I have a Hermes alligator belt with the "H" buckle that I bought 20 years ago for $1000 dollars and today just the leather one sells for almost twice that much. I wouldn't exchange my belt for any in the market today.
TW
TW
What specific strategies are you using to compensate for the devaluation?
In my case I am just mixing half and half pesos and dollars and increasing my dollar portfolio as I get dollars coming in and buying as I find them. Interest rates on peso CDs continue to be higher and as the dollar goes higher, they compensate each other. On the other hand also continuing to keep real estate properties from the market and just letting them sit, while getting devaluated rent income. The increase in cement and construction materials are only making real estate holdings much more valuable and that offsets your loss in rental income. Yet with renewals and cost-of living increases in rental contracts, recovery will come.
In addition, if you have a good car, don't sell it. Your car's used car price just went up, but new ones just went thru the roof. I also find these new cars are not as attractive as they used to be whenever the model year came. They all look the same and manufacturers are changing their style so often, it doesn't make sense to invest the cost of a condo on an accident on wheels. BMW and Mercedes change their sheetmetal so often that their two year old cars look like 10 year old models. Yet they cost more than houses. On the other hand, some American cars that were introduced in 1995 have just minor changes and are still up-to-date.
House electronic components are holding their price. The increase is not hitting this market so bad. But even then, I would not change any electronic equipment. Just use it till it dies. The new technology doesn't make them any better than what you have right now, and you risk the damage of power surges anyway.
Even I am staying away from shopping for clothes, even though most designer boutiques are offering 50-75% discounts now. If you go to Diamond, Bella Vista and Acropolis Mall they are practicly giving away their stock. You can find those fashionable striped shirts that were $1200 for $700. But I am not tempted. My old designer clothes look better and are made of better quality and some of my 10 to 20 year old fashions are coming back strong. The bohemian look is in. Jackets are in. Leather and wool jackets are specially in and you got to see the prices.
I have a Hermes alligator belt with the "H" buckle that I bought 20 years ago for $1000 dollars and today just the leather one sells for almost twice that much. I wouldn't exchange my belt for any in the market today.
TW
TW
Hola Golo!
Wow! Very good reply.
I will send you an e-mail, directly later on, as to my strategies.
Up until recently, it's been hit the ground with both feet running, learning along the way. I've been doing allot of homework, listening and doing. Money is a subject allot of people turn mute on.
I Learned something extremely valuable from the board just yesterday, which had me on the phone with American Express, as soon as I got home.
To Jim Hinsch, I Thank You, Thank you, Thank You!!!!!!
Most people talk about living La Vida Loca Jim, looks like he could write a book on it!
Golo
Hopefully you?re willing to give some advice after we talk later on.
Thanks
Tim H.
Wow! Very good reply.
I will send you an e-mail, directly later on, as to my strategies.
Up until recently, it's been hit the ground with both feet running, learning along the way. I've been doing allot of homework, listening and doing. Money is a subject allot of people turn mute on.
I Learned something extremely valuable from the board just yesterday, which had me on the phone with American Express, as soon as I got home.
To Jim Hinsch, I Thank You, Thank you, Thank You!!!!!!
Most people talk about living La Vida Loca Jim, looks like he could write a book on it!
Golo
Hopefully you?re willing to give some advice after we talk later on.
Thanks
Tim H.
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Uh - get and keep as many dollars as you can, buy and use pesos sparingly as you need them. Dollar investments - here or in the US - are worth more than peos investments. It's that simple on the currency side. Of course, our individual circumstances complicate matters.
As the dollar increases in value, try to remember that currency speculation is risky by its nature and more so in direct proportion to your level of critical mass. In other words, someone like George Soros has much less risk in spite of the comparatively huge sums he moves across the markets. He benefits from highly favorable terms because of his critical mass.
As the dollar increases in value, try to remember that currency speculation is risky by its nature and more so in direct proportion to your level of critical mass. In other words, someone like George Soros has much less risk in spite of the comparatively huge sums he moves across the markets. He benefits from highly favorable terms because of his critical mass.
Spend all your pesos! Save all your dollars!
Works for me.I wish I had a mortgage I could pay off here.Of the "original" (designed and built the place 7 years ago)group of administrators only one remains after last week's "Bloody Friday", when 7 were let go.I was looking forward to my "Liquidacion"! but they kept me! "Dis contri bean berry berry gud for mee"! CRIS
Works for me.I wish I had a mortgage I could pay off here.Of the "original" (designed and built the place 7 years ago)group of administrators only one remains after last week's "Bloody Friday", when 7 were let go.I was looking forward to my "Liquidacion"! but they kept me! "Dis contri bean berry berry gud for mee"! CRIS
I get a little confused on monetary issues. I realize the dollar is strong now in DR and we'll be down next week.
should we keep our US dollars and pay everything with them, or exchange into pesos at the bank. I'm talking specifically about buying furniture, groceries, household stuff, restaurants.
should we keep our US dollars and pay everything with them, or exchange into pesos at the bank. I'm talking specifically about buying furniture, groceries, household stuff, restaurants.
Hello, JanH.
Exhange your dollars for pesos, as you need to.
Shop around for the best Peso to Dollar, rate you can find, and pay in pesos. Banks are only 1 of many places to SELL, your U.S. Dollars. That is what your really doing when exchanging currency. Selling 1 to Buy the other.
Or
The stores will be Happy, to take your dollars at a 16 to 1 rate, and after they traded goods (bought) with your dollars LOW, they can go sell them HIGH, of course you will have to let them keep the profit they made from you.
Tim H.
Exhange your dollars for pesos, as you need to.
Shop around for the best Peso to Dollar, rate you can find, and pay in pesos. Banks are only 1 of many places to SELL, your U.S. Dollars. That is what your really doing when exchanging currency. Selling 1 to Buy the other.
Or
The stores will be Happy, to take your dollars at a 16 to 1 rate, and after they traded goods (bought) with your dollars LOW, they can go sell them HIGH, of course you will have to let them keep the profit they made from you.
Tim H.
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JanH said:
For large purchases, such as furniture, I would ask the seller what the cost would be if you paid in dollars. He needs dollars to pay for imports and will be happy to get them. You should get a better rate than you get from the exchange banks in your area.
For the rest, pay in pesos. But don't cash too many dollars at one time--no more than what you think you will need for a week. Look around; the commercial banks will not be the best place. Vimenca is a good place to change money. I use them in Sosua; they have offices all over the country.
I am glad that I have stayed 90% in Dollars and didn't go up 6 months ago. I have been spending my pesos while in country and investing my dollars trying to whittle them down. Even cashing a few bucks for friends to get bigger into the dollars to limit my exposure and downside.
My advice is to stay in dollars and use the cambios to change into PESOS "As You Need Them".
Golo, if the Peso keeps tumbling your real estate will keep going down. Bad sign for the currency to keep falling and the government not being able to do anything about it although they want to. When the country hits bottom so will your real estate values. Do you think it has hit bottom or still has a ways to go? I don't think that Real Estate was a good investment 1 1/2 years ago and less so now. People are just NOT going to have the money to purchase it the way things are going without having a dump truck to carry the pesos in.
IMHO
Escott, Economist at Large
My advice is to stay in dollars and use the cambios to change into PESOS "As You Need Them".
Golo, if the Peso keeps tumbling your real estate will keep going down. Bad sign for the currency to keep falling and the government not being able to do anything about it although they want to. When the country hits bottom so will your real estate values. Do you think it has hit bottom or still has a ways to go? I don't think that Real Estate was a good investment 1 1/2 years ago and less so now. People are just NOT going to have the money to purchase it the way things are going without having a dump truck to carry the pesos in.
IMHO
Escott, Economist at Large
Jazzcom
The thing about DR is that at least if you own a home or real estate you have a tangible asset that other people don't have. Having a roof over your head in DR is half the battle. Food is easy to get. People are now used to little or no electricity for many hours and if they can't cook with gas they will cook with charcoal. However, charcoal is still more expensive than gas. So our trees just got a reprieve from Haitianization.
With such an enourmous housing deficit apartments and houses will still be a good investment in such disaster market. Those who don't have a place to live are the ones who are screwed.
Vimenca today is buying your dollars for $24.30 but has no dollars to sell. Where is the $600 million sovereign bonds?
TW
The thing about DR is that at least if you own a home or real estate you have a tangible asset that other people don't have. Having a roof over your head in DR is half the battle. Food is easy to get. People are now used to little or no electricity for many hours and if they can't cook with gas they will cook with charcoal. However, charcoal is still more expensive than gas. So our trees just got a reprieve from Haitianization.
With such an enourmous housing deficit apartments and houses will still be a good investment in such disaster market. Those who don't have a place to live are the ones who are screwed.
Vimenca today is buying your dollars for $24.30 but has no dollars to sell. Where is the $600 million sovereign bonds?
TW
Dollarization: forget it. It doesn't work. What the DR calls its currency....or whether they peg it to some other country's currency....it does not make a whit of difference. Where will you get the US$Billions and billions? That is not the problem.
The problem is that most people in the DR do not understand the ramifications of the fiscal maneuvers that Mejia has been making. You cannot borrow money to support a collapsing currency. I will not regurgitate all the points I continually make on the handling of the DR economy, but suffice it to say the the key is to keep Mejia from getting his paws on an ever increasing amount of borrowed money. The cessation of borrowing along with a 30% cut in the government budget is the solution.
The problem is that most people in the DR do not understand the ramifications of the fiscal maneuvers that Mejia has been making. You cannot borrow money to support a collapsing currency. I will not regurgitate all the points I continually make on the handling of the DR economy, but suffice it to say the the key is to keep Mejia from getting his paws on an ever increasing amount of borrowed money. The cessation of borrowing along with a 30% cut in the government budget is the solution.
or on the other hand, you could continue borrowing to pay off interest until the country goes bankrupt.. Oh wait. They are already doing that
Social Security to the rescue!!!!!!!!!!!!!!!!!!!!!
Private employers will now be required to put 5% of the employees wage into Social Security,and employees 1.9 % of their wage.This money will be "collected" by the government,and used to fund social security in the DR!This should soon amount to Billions of pesos set aside for the program.How long before that money disappears into the "Black-Hole" of the PRD party faithful's hands?The American Politicians continually "Raid" US Social Security" for other projects,what do you think will happen here??? CRIS
Private employers will now be required to put 5% of the employees wage into Social Security,and employees 1.9 % of their wage.This money will be "collected" by the government,and used to fund social security in the DR!This should soon amount to Billions of pesos set aside for the program.How long before that money disappears into the "Black-Hole" of the PRD party faithful's hands?The American Politicians continually "Raid" US Social Security" for other projects,what do you think will happen here??? CRIS
Criss, you were not informed well. The money will NOT be administered by the government, but by private companies, most owned by banks. I just signed my papers today... 
Oh really??
Pib.
I understood that the 6 companies that are administrating the SS policy are in fact majority owned by the Government in bed, with the Banks, here, something similar along the lines of the power generation and distribution deals.
This way, when they are done grabbing the cash out of the tills, they can all point fingers at each other and say---
Moe, did it!
No, Larry, did it.
No, No, Curly, did it.
No, No, No, Your all wrong, Hippolito did it!!!!
If you really know it's a straight deal, give me some info please.
All I keep hearing, is everybody at work saying " I want my liqiudation money, before they ( Government) get it".
Thanks
Tim H.
Pib.
I understood that the 6 companies that are administrating the SS policy are in fact majority owned by the Government in bed, with the Banks, here, something similar along the lines of the power generation and distribution deals.
This way, when they are done grabbing the cash out of the tills, they can all point fingers at each other and say---
Moe, did it!
No, Larry, did it.
No, No, Curly, did it.
No, No, No, Your all wrong, Hippolito did it!!!!
If you really know it's a straight deal, give me some info please.
All I keep hearing, is everybody at work saying " I want my liqiudation money, before they ( Government) get it".
Thanks
Tim H.
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The Social Security system in the USA was one of the greatest pyramid schemes ever invented. Only recently have the politicians admitted that the money we contribute is either spent on payouts to those already retired or spent on general accounts (pork barrel). There is no such thing as a social security fund.
I just recently received my Social Security statement. It shows what is owed to me. That money does not exist. It is merely an IOU from the government.
I don't know much detail about the DR plan, but unless you can withdraw your money anytime you want ..... if you are forced to wait until retirement to begin collecting....well.....my condolences to you folk in the DR who were just fleeced.
You now have 5% less money than you used to have. That is the only thing you can count on. Think of it as a tax hike, cause thats what it really is here in the USA.
Please, pretty please don't tell me that you actually believe that Mejia and his folk are taking your money so that they can prudently invest it for you....keep it in a safe place .....then give it back to you with interest many years from now......please, say it isn't so!!!!!!
I just recently received my Social Security statement. It shows what is owed to me. That money does not exist. It is merely an IOU from the government.
I don't know much detail about the DR plan, but unless you can withdraw your money anytime you want ..... if you are forced to wait until retirement to begin collecting....well.....my condolences to you folk in the DR who were just fleeced.
You now have 5% less money than you used to have. That is the only thing you can count on. Think of it as a tax hike, cause thats what it really is here in the USA.
Please, pretty please don't tell me that you actually believe that Mejia and his folk are taking your money so that they can prudently invest it for you....keep it in a safe place .....then give it back to you with interest many years from now......please, say it isn't so!!!!!!