is weaker economy/paso better for you?

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liam1

Bronze
Jun 9, 2004
843
30
28
ok, if the dollar is weakening, and the prices are staying the same (someone posted that prices are staying the same), you gotta spend more dollars for the same item. so if you're just living in DR and you made/are making money elsewhere weaker economy/paso is better for you and your purchasing power. your dollar takes you further when it's worth 48 pasos instead of 37. i know socially weaker economy is not good for anyone (healthcare, education, more crime...) but as far as living expenses go, weaker economy/paso is better for people who are living off USDs earned outside DR.



i'd also like to know:
what is the difference between an SUV and a jeepeta?
what is a novia? (i'm guessing it's girlfriend but not sure).
do tourist towns always have electricity? (i've been twice to B.C. and not one single blockout).
 
R

ricktoronto

Grande Pollo en Boca Chica
Jan 9, 2002
4,837
0
0
The weakening of the peso is temporary as prices rise to meet the fall in the value of the peso, so eventually the prices in real currency are the same or higher than they were so the US$ income doesn't create a windfall for very long. And with the peso rising in value the prices should drop when in fact they are still going up, I guess the vendors recouping past losses.

A novia is a girlfriend.

Boca Chica has power outages almost every day. if you are in an AI or any decent tourist class hotel they have generators. It went out at least three times between Thursday and Sunday last week.
 
K

Ken

Platinum
Jan 1, 2002
13,884
495
83
liam1 said:
ok, if the dollar is weakening, and the prices are staying the same (someone posted that prices are staying the same), you gotta spend more dollars for the same item. so if you're just living in DR and you made/are making money elsewhere weaker economy/paso is better for you and your purchasing power. your dollar takes you further when it's worth 48 pasos instead of 37. i know socially weaker economy is not good for anyone (healthcare, education, more crime...) but as far as living expenses go, weaker economy/paso is better for people who are living off USDs earned outside DR.
Click to expand...

Prices are not staying the same. When the peso fell, those who had dollars did very well at first because prices increased more slowly than the peso fell. Not that the peso has strengthened, it will again take prices to reach their level. Meantime, dollar holders are "hurt".

It is best to live in the DR or any country when the economy is stable. I don't care if the rate of exchange is 2 to 1 or 200 to 1 as long as things are stable and the citizens of that country don't have more than the normal things go worry about.

There may be some recouping of past losses on the part of vendors, but one also must keep in mind that many of the items that will be sold tomorrow are still in the pipeline today and were paid for at a time when economic conditions are different than today.
 
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