Historical Exchange Rates per U.S. Government

[playacaribe2]

From the DR1 news this morning..........reports of the peso being 60:1 in some places;

The peso reaches historic depreciation; sales at RD$60 to 1 are reported

The Central Bank announced it will be injecting US$60 million of reserves into the financial system to quell the marked depreciation of the Dominican peso. The official rate on 26 May 2020 was RD$56 to US$1, but banks do not have US$ available to meet the demand. The situation has been happening...

dr1.com

More pain for the peso is yet to come.


Respectfully,
Playacaribe2

 

[playacaribe2]

From the DR1 news this morning..........reports of the peso being 60:1 in some places;

The peso reaches historic depreciation; sales at RD$60 to 1 are reported

The Central Bank announced it will be injecting US$60 million of reserves into the financial system to quell the marked depreciation of the Dominican peso. The official rate on 26 May 2020 was RD$56 to US$1, but banks do not have US$ available to meet the demand. The situation has been happening...

dr1.com

More pain for the peso is yet to come.


Respectfully,
Playacaribe2

 

[Big]

From the DR1 news this morning..........reports of the peso being 60:1 in some places;

The peso reaches historic depreciation; sales at RD$60 to 1 are reported

The Central Bank announced it will be injecting US$60 million of reserves into the financial system to quell the marked depreciation of the Dominican peso. The official rate on 26 May 2020 was RD$56 to US$1, but banks do not have US$ available to meet the demand. The situation has been happening...

dr1.com

More pain for the peso is yet to come.


Respectfully,
Playacaribe2

bring on 100, makes math so much easier. Can you imagine, slam down a 2000 bill on the bar for a beer

 

[playacaribe2]

And again the government reiterates there is no shortage of dollars...............so by now you should know when they say that there is no shortage of dollars..........there is a shortage..............and it is also being confirmed in the exchange rate;

Central Bank: we have enough dollars

<p>Santo Domingo.- Central Banker Héctor Valdez Albizu on Tue. attributed the high demand of the dollar and the recent rise in the rate to the pandemic. He said that among the situations figure the closure of tourism, foreign investment, decrease in remittances and imports from free zones that...

dominicantoday.com

Respectfully,
Playacaribe2

 

[playacaribe2]

bring on 100, makes math so much easier. Can you imagine, slam down a 2000 bill on the bar for a beer

It was such the case during the Baninter crisis. Rooms at the hotels were priced in pesos and you could stay at the finer hotels in SD for $28.00 a night......full buffet breakfast included............but that was short lived as prices then started to be quoted in dollars.

That kind of move (100:1) over a short period of time would devastate the economy and force the DR to seek an IMF bailout. The benefits to those holding dollars would be short lived as prices for goods in pesos would now also rise............sometimes daily.


Respectfully,
Playacaribe2

 

[Caonabo]

bring on 100, makes math so much easier. Can you imagine, slam down a 2000 bill on the bar for a beer

This is how most foreigners misinterpret buying power when it comes to the depreciation of the peso.
Do not look at USD to DOP and automatically think windfall....cha-ching. More pesos gained per $ does not play out well.
That beer (or whatever else you like so much) will just rise in price, as adjustments and costs are simply passed on to the consumer.

The beer companies WILL NOT lose money, they will adapt and adjust, but your buying power will decrease.

Let us use your 2000 DOP bill as an example:

Gringo X goes to the corner colmado to buy beer for his Sabado Gigante. He takes with him the 2000 peso note he just got from the Banco Popular ATM.

Cost of beer x bottles of beer = total price
125x16=2000
150x13=1950 (50 pesos change)
175x11=1925 (75 pesos change)
200x10=2000

Right now with your 2000 pesos, you can buy 16 bottles of beer.
With the peso dropping, beer companies raise their prices.
Would you rather have 16 or 10 bottles of beer for your 2000 pesos?

 

[windeguy]

Things I recall seeing on DR1.

- The US dollar will not be the prominent currency in the world. And soon, really soon that will change. Right...
- If the peso were left to float it would be a 28 DOP to the USD. I still laugh when I think of that one. Where is my smart gun anyway?

While predictions are good, I tend to follow reality. The USD is still in the lead and the DR peso is way behind. Any more predictions out there?
With enough predictions, someone will be right.

 

[Big]

This is how most foreigners misinterpret buying power when it comes to the depreciation of the peso.
Do not look at USD to DOP and automatically think windfall....cha-ching. More pesos gained per $ does not play out well.
That beer (or whatever else you like so much) will just rise in price, as adjustments and costs are simply passed on to the consumer.

The beer companies WILL NOT lose money, they will adapt and adjust, but your buying power will decrease.

Let us use your 2000 DOP bill as an example:

Gringo X goes to the corner colmado to buy beer for his Sabado Gigante. He takes with him the 2000 peso note he just got from the Banco Popular ATM.

Cost of beer x bottles of beer = total price
125x16=2000
150x13=1950 (50 pesos change)
175x11=1925 (75 pesos change)
200x10=2000

Right now with your 2000 pesos, you can buy 16 bottles of beer.
With the peso dropping, beer companies raise their prices.
Would you rather have 16 or 10 bottles of beer for your 2000 pesos?

my man, I completely understand the dynamics of the arbitrage market and how they affect purchasing power. I was and have been joking about the constantly changing peso and how you have do different math every time you buy a cold beer

 

[Big]

Things I recall seeing on DR1.

- The US dollar will not be the prominent currency in the world. And soon, really soon that will change. Right...
- If the peso were left to float it would be a 28 DOP to the USD. I still laugh when I think of that one. Where is my smart gun anyway?

While predictions are good, I tend to follow reality. The USD is still in the lead and the DR peso is way behind. Any more predictions out there?
With enough predictions, someone will be right.

cash is king and always will be. USA cash!! The stuff the wealthy oil barons in the middle east buy by the pallet

 

[NanSanPedro]

This is how most foreigners misinterpret buying power when it comes to the depreciation of the peso.
Do not look at USD to DOP and automatically think windfall....cha-ching. More pesos gained per $ does not play out well.
That beer (or whatever else you like so much) will just rise in price, as adjustments and costs are simply passed on to the consumer.

The beer companies WILL NOT lose money, they will adapt and adjust, but your buying power will decrease.

Let us use your 2000 DOP bill as an example:

Gringo X goes to the corner colmado to buy beer for his Sabado Gigante. He takes with him the 2000 peso note he just got from the Banco Popular ATM.

Cost of beer x bottles of beer = total price
125x16=2000
150x13=1950 (50 pesos change)
175x11=1925 (75 pesos change)
200x10=2000

Right now with your 2000 pesos, you can buy 16 bottles of beer.
With the peso dropping, beer companies raise their prices.
Would you rather have 16 or 10 bottles of beer for your 2000 pesos?

Agree, but there are exceptions. My 2 Altices contracts for a fixed sum of DOP is getting cheaper each month as the DOP devolves.

Now, could they raise prices at the next contract? Of course, but that's not till next year for one and 2021 for the other.

 

[cavok]

I'm renewing my residency and just had to buy repatriation insurance. I could pay $115 USD(that's what it has always been), or RD $5462, which is what they charged in pesos last year. Guess which one I chose.

 

[melphis]

I'm gonna need a wheel barrel to haul my pesos around if this keeps up.

 

[DR Solar]

Don't know where anyone other then ONE person is saying 60. Double checked with my guys and on line exchanges. 55.55 was the average.

 

[cavok]

Your guys are getting ripped off. I can get 57.50 online at Banco Santa Cruz and 58+ at most cambios. I got 58.25 at CaribeExpress 2 days ago.

 

[Tom0910]

Don't know where anyone other then ONE person is saying 60. Double checked with my guys and on line exchanges. 55.55 was the average.

You need new guys,they are forking you....

 

[Jumbo]

This is how most foreigners misinterpret buying power when it comes to the depreciation of the peso.
Do not look at USD to DOP and automatically think windfall....cha-ching. More pesos gained per $ does not play out well.
That beer (or whatever else you like so much) will just rise in price, as adjustments and costs are simply passed on to the consumer.

The beer companies WILL NOT lose money, they will adapt and adjust, but your buying power will decrease.

Let us use your 2000 DOP bill as an example:

Gringo X goes to the corner colmado to buy beer for his Sabado Gigante. He takes with him the 2000 peso note he just got from the Banco Popular ATM.

Cost of beer x bottles of beer = total price
125x16=2000
150x13=1950 (50 pesos change)
175x11=1925 (75 pesos change)
200x10=2000

Right now with your 2000 pesos, you can buy 16 bottles of beer.
With the peso dropping, beer companies raise their prices.
Would you rather have 16 or 10 bottles of beer for your 2000 pesos?

You are off. At 200 pesos a beer at 100 to one gets you 17 beers with 100 pesos change more or less

2000 divided by 57 is $35.08

35.08 times 100 is 3508 pesos

3508 divided by 200 is 17 beers with 108 change.

 

[cavok]

Is that common core math?

 

[Caonabo]

You are off. At 200 pesos a beer at 100 to one gets you 17 beers with 100 pesos change more or less

2000 divided by 57 is $35.08

35.08 times 100 is 3508 pesos

3508 divided by 200 is 17 beers with 108 change.

Whatever works for you in your local colmado.
Enjoy your day, as you so see fit.

 

[irsav]

You are off. At 200 pesos a beer at 100 to one gets you 17 beers with 100 pesos change more or less

2000 divided by 57 is $35.08

35.08 times 100 is 3508 pesos

3508 divided by 200 is 17 beers with 108 change.

Locals will not buy at his new increased prices. And he will need to adjust back.

 

[Caonabo]

Locals will not buy at his new increased prices. And he will need to adjust back.

Oh, locals will continue to buy beer and rum, even if the prices do increase.
The money that they request from "friends" abroad will likely increase as well. In amount, and frequency requested.