Why doesn't the DR adopts the USD as its currency?

[Ron Anjero]

Maybe no one is paying attention to the "International" currency exchange, my best bet is the Chinese Yuan Renminbi.
After all they own several trillion of USA debt.

However each country is entitled to have its own currency. I mean really what is a Canadian Dollar worth in the rest of the world?

 

[the gorgon]

Maybe no one is paying attention to the "International" currency exchange, my best bet is the Chinese Yuan Renminbi.
After all they own several trillion of USA debt.

However each country is entitled to have its own currency. I mean really what is a Canadian Dollar worth in the rest of the world?

actually, it is not several trillion. it is 1.3 trillion.

still a lot of debt.

 

[playacaribe2]

Maybe no one is paying attention to the "International" currency exchange, my best bet is the Chinese Yuan Renminbi.
After all they own several trillion of USA debt.

However each country is entitled to have its own currency. I mean really what is a Canadian Dollar worth in the rest of the world?

I see your point, but the thread is about the DR "Dollarizing" its economy.

Many countries hold US debt as a safe haven play. Even the DR holds some Treasury debt.

Here is the latest breakdown from the Treasury. China is the largest foreign holder of US debt currently at 1.1 trillion. The DR is one of the "All other" countries.....but could also include debt owed to Cayman Islands entities that interestingly comes in at number 7 on the list.

http://ticdata.treasury.gov/Publish/mfh.txt

A working paper from 2000 regarding Argentina dollarizing is below. Argentina has gone through so many boom and bust cycles, there was serious consideration given to dollarization. Many of the pro/con arguments could also be applied to the DR.

https://www.imf.org/external/pubs/ft/wp/2000/wp0050.pdf


Respectfully.
Playacaribe2

 

[windeguy]

There are many Canadians that vacation and winter in DR because it is more affordable than any other warm destination. If they changed the currency, that would change. Huge loss in real estate and retail.

Don't many Canadians already change their CAD to USD even before leaving Canada because the FOREX rate for CAD to DOP within the DR is so bad that it is better for them to bring in USD?

I know of one Canadian who loved the drop in value of the CAD because his place in the DR was worth so much more because of it.

 

[Russell]

Maybe no one is paying attention to the "International" currency exchange, my best bet is the Chinese Yuan Renminbi.
After all they own several trillion of USA debt.

However each country is entitled to have its own currency. I mean really what is a Canadian Dollar worth in the rest of the world?

Being a Canadian I think the Canadian Dollar is not only respected , but a few years ago the Canadian Dollar was worth $1.10 usd. Dollars pegged to the USD such as Canadian one does are always in a state of flux . I check the exchange rate daily simply to see where we stand and how many DOP I can buy today.
Back in 2008 Iceland entertained the thought of adopting the CDN$,
Here in Canada the CDN$ is still worth a dollar.... I do not see any change in my lifestyle in Canada.
So in response the Canadian Dollar means a lot to me.
The USD. not so much...but that's a personal thing anyway.
Russell

 

[Lobo Tropical]

Maybe no one is paying attention to the "International" currency exchange, my best bet is the Chinese Yuan Renminbi.
After all they own several trillion of USA debt.

However each country is entitled to have its own currency. I mean really what is a Canadian Dollar worth in the rest of the world?

Ever noticed how Canadian Banks performed in the 2008 economic crisis?
https://www.forbes.com/2008/12/11/canada-banking-crisis-oped-cx_re_1211elliott.html#42c5d7c42e50

http://business.financialpost.com/news/fp-street/canadas-banks-shake-off-global-sector-crisis

I agree with Russel post#36
The DR economy is not doing badly and the DR is better off in keeping the DOP.
People in the DR are not starving.
Nowhere does one see the homeless people living on the streets or the drug addicts on the streets in the DR, as we do in Europe,the US, or Canada.

 

[Lobo Tropical]

There are quite a few European countries that lost their currency to Euro, but yet again, I fail to see how my origins have anything to do with this thread... Yes, I mentioned being from there, but you continued with an irrelevant question...

So did Germany for instance.
Yet I much prefer having the € for trade and travel.
Those old enough remember what travel in Europe was like, having to exchange currency for each country.
Many European currencies had to be helped to regulate trade and economies.
The strength of the € of course makes exports costly.

Seems like Jason likes to debate for nothing. Kosovo???

 

[aarhus]

Ever noticed how Canadian Banks performed in the 2008 economic crisis?
https://www.forbes.com/2008/12/11/canada-banking-crisis-oped-cx_re_1211elliott.html#42c5d7c42e50

http://business.financialpost.com/news/fp-street/canadas-banks-shake-off-global-sector-crisis

I agree with Russel post#36
The DR economy is not doing badly and the DR is better off in keeping the DOP.
People in the DR are not starving.
Nowhere does one see the homeless people living on the streets or the drug addicts on the streets in the DR, as we do in Europe,the US, or Canada.

I have recently spend time in Miami, San Fransisco and Charlotte. I made the comment to some people there that I found the poverty in these cities more brutal than in the DR and they looked at me and said really. Then I thought to myself maybe I am wrong and I have just gotten used to the DR type poverty. But I am glad others here on dr1 has made similar observations. 

 

[Russell]

RElevant to changing currency for economic reasons... as reflected upon the RD.
Prior to the EU currency implementation; a friend of mine lived in his own apartment and his girlfriend in hers. They each had a job. Since the EU currency was issued they now share an apartment , he has three jobs (Two full time and one part time) She has two full time jobs.. they still struggle to keep just above the poverty level. They lived in Cannes FR.

My home in RD has increased in value just because of Dollar devaluation. Hopefully I will make a ''break Even'' when I sell it.

Russell

 

[the gorgon]

I have recently spend time in Miami, San Fransisco and Charlotte. I made the comment to some people there that I found the poverty in these cities more brutal than in the DR and they looked at me and said really. Then I thought to myself maybe I am wrong and I have just gotten used to the DR type poverty. But I am glad others here on dr1 has made similar observations. 

the thing is that in urban environments, if you have no money for food, you can die...nobody in a place like the DR is going to watchb another human die of hunger.


can you imagine the response if a Dominican politician was to propose the idea of fining people who fed the poor?

 

[Russell]

Rusell,

Bud I've learned to respect you thus is tough to even have a different opinion other than the one you have. With that being said, and as you described, opinions are just that. You still one of my favorites posters here BTW.

Jason,
I have equal respect for all posters.
We are a community of voices who like to give our opinions on virtually any and all subjects.
Our collective opinions are just that ''opinions''.
Some opinions are or responses are ''liked this post'' or ''Dislike this post''.
When one creates a thread ,we have to expect one response or the other.
There are veteran posters and there are 'newbies'..... many newbies whom are looking for advice tend to gravitate towards the more established Members of the Dr1 site.
On the other hand there are Newbies whom may have vastly greater experience than the longer term Members of Dr1... and so their opinions will surface as being logical, informative , factual, acceptable , and perhaps out of our ''pay grade'' so to speak.
What I am totally in opposition from one poster on one subject I may totally agree on another.
I do not make or take it personal, never become defensive and not paranoid from responses.

Most importantly of all is ''assume nothing''!
On Dr1 we have Women, Men,LGBTQ ; Lonely , alone , those suffering and those fortunate to have a day when everything goes right. But, we are here and for the most part we are the ''invisible community'' both in the RD and outside.

I have posted and found tremendous compassion, and I got my ass kicked a time or two.
The same was with my own Family while attempting to grow up. (Not sure that has totally evolved as of yet).

In conclusion , ''I have no favorite Posters on Dr1''.... or, ''all posters are my favorites''.

You have a Happy Easter.

Russell

 

[Rumble2005]

There are many Canadians that vacation and winter in DR because it is more affordable than any other warm destination. If they changed the currency, that would change. Huge loss in real estate and retail.

Maybe I am not shopping well enough but each year when I return to the DR to thaw out we are charged in American $$$ for our accommodations (this is by far our biggest expense) . For everything else we pay pesos but it seems the DOP and USD roughly follow follow each other relative to the CDN dollar. I could be wrong on this but it does feel that way to me .......

 

[snowqueen]

Maybe I am not shopping well enough but each year when I return to the DR to thaw out we are charged in American $$$ for our accommodations (this is by far our biggest expense) . For everything else we pay pesos but it seems the DOP and USD roughly follow follow each other relative to the CDN dollar. I could be wrong on this but it does feel that way to me .......

I know many places try to charge in US currency, but I always insist on paying in pesos. I tell them I am a Canadian travelling in DR, why would I carry US currency? At large, reputable retailers, I use a credit card and get a better rate than anywhere I have found.

 

[Fernandez]

Not adopting USA FX:

Pay labor in a weak currency... Charge services in US$.
Easy.

 

[suavena]

Zimbabwe uses several currencies so apples and oranges?
I'm pretty sure the Dominicans wouldn't mind trading the peso for the dollar, when it comes to money they don't care about national pride.

You might say some but not all. Do not generalize to make your point, let me give you an example. After Haiti 1991 Coup d' etat, incoming American president Bill Clinton threatened, bribe, mounted such a great pressure etc in order for Balaguer to open the border with Haiti to install refugee camp. Balaguer in turn shutdown the border that not even a mosquito could come across sending most of the Dominican army to the border (as oppose to Leonel during the Earthquake and now we are learning that Danilo is teaming up with George Soros) In turn the USA were force to take them to Guantanamo.

 

[Meemselle]

Why doesn't the US adopt the peso?

 

[Russell]

Look up Dollarization in the I-net. Interesting.
Wikipedia has a good analogy why dollarization is used by many countries worldwide.

"Why countries choose to used USD as their primary currency" is a good I-Net topic as well.

I may not necessarily agree with this philosophy; but. someone put a lot of time and thought into the remarks and opinions.
Russell

 

[JasonD]

Why doesn't the US adopt the peso?

Really?

 

[JasonD]

the thing is that in urban environments, if you have no money for food, you can die...nobody in a place like the DR is going to watchb another human die of hunger.


can you imagine the response if a Dominican politician was to propose the idea of fining people who fed the poor?

Because of its people. Now the politicians would leave out to dry without any remorse.