The Dominican Peso will be 1:1 with the US Dollar Again?

J

johne

Silver
Jun 28, 2003
7,092
2,965
113
Will it be 1:1 again?
Answer: It will be whatever the Dominican Republic gubmint wants it to be. It is not a tradeable currency. The DOP does not trade with big boy pants on like the leading currencies.If you're a betting person you will understand it like this: At the roulette wheel the winning number is controlled by a foot pedal that says-over, under or even, to your bet. Real simple.
 
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Mr Deal HD

Mr Deal HD

Active member
Sep 11, 2019
132
58
28
Lucifer said:
Where?

This was yesterday's rates at these locations:

55.8 Caribe Express San Cristobal
54.20 BHD San Cristóbal
Click to expand...
I don’t exchange money. I use one of my debit cards (issued in the Bahamas; BSD 1:1 with USD). Which doesn’t charge me foreign transaction fees. And exchanges based on the market; 57.15 as of this moment. I hardly ever use or need cash and I’ve been living here for 2 years. Only time cash is needed is for propinas, and buying jewelry because they don’t accept cards where I go. I reside in the ND in Santo Domingo, so cards are accepted everywhere I frequent (except my jeweler). Even the colmado sends the guys on the moto with the portable POS. So, I rarely need cash.

P.S. - And don’t worry, I use this particular card because I only keep a few dollars on this account and then transfer money there from another account using my banking app to make payments. If my card is cloned, it will essentially be worthless to the scammers.
 
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P

playacaribe2

Gold
Jan 9, 2004
10,912
2,247
113
pinonuevo said:
Dollar moving to 60 to 1 soon
Click to expand...
The Dollar is weakening worldwide and headed back to its historic norm of 115 as measured by the Nominal Dollar index;

fred.stlouisfed.org

Nominal Broad U.S. Dollar Index

Graph and download economic data for Nominal Broad U.S. Dollar Index (DTWEXBGS) from 2006-01-02 to 2024-03-22 about trade-weighted, broad, exchange rate, currency, goods, services, rate, indexes, and USA.
fred.stlouisfed.org

International risk capital flees into the dollar (flight to quality) during periods of uncertainty. Looking at the chart you see two spikes in the dollar. The first is from Covid and the second is the invasion of Ukraine.

So if the dollar is weakening......and it currently is................what event do you believe will move the dollar to strengthen to 60:1 against the peso.......soon?

In the alternative, because currency risk is two-sided, what event(s) in the DR are likely to cause the peso to weaken to 60:1.........soon?

While 60:1 appears to be more likely than not, based on my read of the current economic tea leaves, it will not be soon.............unless a major black swan event were to occur on the DR side of the trade.

Perhaps in a year or two.......

Respectfully,
Playacaribe2
 
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chico bill

chico bill

Dogs Better than People
May 6, 2016
12,632
6,389
113
johne said:
Will it be 1:1 again?
Answer: It will be whatever the Dominican Republic gubmint wants it to be. It is not a tradeable currency. The DOP does not trade with big boy pants on like the leading currencies.If you're a betting person you will understand it like this: At the roulette wheel the winning number is controlled by a foot pedal that says-over, under or even, to your bet. Real simple.
Click to expand...
If it were to actually be one to one then tourism would not exist and property sales to foreigners would have ceased.
Punta Cana would be hundreds of old crumbling hotels covered in vines
 
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Y

Yourmaninvegas

Well-known member
Feb 16, 2016
3,292
2,589
113
-
playacaribe2 said:
The Dollar is weakening worldwide and headed back to its historic norm of 115 as measured by the Nominal Dollar index;

fred.stlouisfed.org

Nominal Broad U.S. Dollar Index

Graph and download economic data for Nominal Broad U.S. Dollar Index (DTWEXBGS) from 2006-01-02 to 2024-03-22 about trade-weighted, broad, exchange rate, currency, goods, services, rate, indexes, and USA.
fred.stlouisfed.org

International risk capital flees into the dollar (flight to quality) during periods of uncertainty. Looking at the chart you see two spikes in the dollar. The first is from Covid and the second is the invasion of Ukraine.

So if the dollar is weakening......and it currently is................what event do you believe will move the dollar to strengthen to 60:1 against the peso.......soon?

In the alternative, because currency risk is two-sided, what event(s) in the DR are likely to cause the peso to weaken to 60:1.........soon?

While 60:1 appears to be more likely than not, based on my read of the current economic tea leaves, it will not be soon.............unless a major black swan event were to occur on the DR side of the trade.

Perhaps in a year or two.......

Respectfully,
Playacaribe2
Click to expand...
Markets go up and markets go down.
DOP does not always weaken against USD in the short term.
I will not deny the long term trend.
 
Y

Yourmaninvegas

Well-known member
Feb 16, 2016
3,292
2,589
113
-
The solution to the problem of inflation of the USD and weakness of the DOP is to not store your life energy in either currency.
Dominicans need to take a hard look at their quest for USD.
In my opinion it is simply the same mangy dog but with less fleas.

Thanks for listening @william webster
I appreciate all the love and your responses.
Keep them coming,
 
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Xavier_Onassis

Xavier_Onassis

Gold
Aug 6, 2006
8,775
12
38
CristoRey said:
Give it another 10 years and the Dominican Peso will probably be worth more than the USD. America's transition to Socialism is gonna be rough. Smart people have already started preparing for it as they continue printing wellfare money out of thin air.
Click to expand...
The dollar has suffered less inflation that the pound, the Euro and a lot of other national currencies. "Tranisition to socialism?" Please.
 
K

Kipling333

Bronze
Jan 12, 2010
2,528
829
113
The figures that were released in the USA last week relating to the cost of living suggest that maybe the worst is over as far as inflation is concerned and that high interest rates may not be needed for much longer to help curb inflation. Central Banks often act on information that is ,by necessity, a little dated and the last interest rate rise in the USA may not have been necessary . In the DR, I can not imagine that the 10% that banks are giving on short term Certificates will last much longer. So I see little changing between the peso and the dollar.
 
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