Oh, yeah, like this is just great!
I hear a few people sitting on this forum stating that Peso appreciation is good for the economy? Good for the Dominican People? And good for foreign investment?
Jesus, how wrong can you guys be?
Ok, so I want to build a 50 million dollar hotel complex somewhere on the north coast, I am sure you appreciate that this is not something that you wake up one morning and go and do, it takes some time and planning, so twelve months ago I send some guys over who start putting things together, find some land,research and account costs for local building products, workforce, taxes, supervisory expenses. Then I send a team to calculate how much capital I need to employ for the first 12 months of running (salaries, consumables etc) then I go to my investors and give them a DOLLAR amount that we are going to need for the project (less returns from recievables, which would be in dollars in any case)
Now I come to start my project 1st October 2004 and What The Hell I am 80% over budget before I can even start!!!!! OK so no hotel, no US dollars into local economy and NO EMPLOYMENT!!!! Lets go build someplace else!!
So thats good news is it guys?? I dont think so! Of all the places on earth for expats to live and work or invest why would anyone choose here in the DR?? Let me tell you because its CHEAP, take that factor away and all that foreign money is just going to go someplace else!
Ok, so theres my rant, but Iseriously believe that a bad situation has just become worse. Also why did no-one here tell me this was going to happen **** I could have made an easy 200K just converting to pesos at 50, not to mention the interest benefits in the mean time! (thinking particularly about those guys who seem a little quiet now but used to put nice example of how 60% interest actualy gave a negative return in the face of curreny devaluation & that guy who said it was going up again and if we didnt believe him to bet against him!! well I sure as hell wish I had and I bet he does too!)
Nick