What would be the advantage of being paid in dollars vs pesos? I have read some posts where the person says they want to be paid in dollars and I can't figure out why that would matter. Especially since I think it would be rare that someone would make enough to send/take any back "home".
- Thread starter GKLSY
- Start date
Dollars vs Pesos
Example...
In 2002, the peso was at about 20/1 vs the dollar. If you were paid in pesos a salary of 40,000 pesos was worth US$2000.
In 2003, the peso plummeted against the dollar, going to almost 57/1. That same 40,000 pesos salary you were happy with the year before was now worth the equivalent of US$700. If you'd chosen your salary in dollars instead, you could've converted the US$2000 to RD$114,000 - but alas you chose pesos & either had to convince your boss to pay you more pesos, switch to dollars at the original rate, or like most Dominicans... suffer.
That's an extreme, but real example. The peso's been more stable in recent years. However, many like to be paid in dollars as they feel more secure that their earnings/buying power aren't eroded by the exchange rate. Of course, it can work in reverse... if the peso strengthens there's some advantage to being paid in pesos.
In 2002, the peso was at about 20/1 vs the dollar. If you were paid in pesos a salary of 40,000 pesos was worth US$2000.
In 2003, the peso plummeted against the dollar, going to almost 57/1. That same 40,000 pesos salary you were happy with the year before was now worth the equivalent of US$700. If you'd chosen your salary in dollars instead, you could've converted the US$2000 to RD$114,000 - but alas you chose pesos & either had to convince your boss to pay you more pesos, switch to dollars at the original rate, or like most Dominicans... suffer.
That's an extreme, but real example. The peso's been more stable in recent years. However, many like to be paid in dollars as they feel more secure that their earnings/buying power aren't eroded by the exchange rate. Of course, it can work in reverse... if the peso strengthens there's some advantage to being paid in pesos.
Was fairly common in the zona franca's for employees brought in from outside the country. These companies brought in dollars, so there was some dollar mindset for non-Dominican employees.
As you said, some of the international schools do it as well... probably a few other places... but not that common overall I'd think.