War in Ukraine has sparked a scramble for dollars
https://edition.cnn.com/profiles/julia-horowitz
By
Julia Horowitz,
CNN Business
Updated 1350 GMT (2150 HKT) March 6, 2022
London (CNN Business)The US dollar serves as the backbone of the global economy and is considered the safest currency to hold. So in times of uncertainty, investors like to stock up.
One reason for its sharp rise: Investors decided they didn't want to hold euros anymore given Europe's proximity to the conflict. They dumped the bloc's common currency and bought dollars instead.
Remember: US stocks have been doing
way better than European shares since Russia's invasion because America's economy is more insulated from the war and its consequences.
"Markets and central banks want to hold the dollar because it's a very liquid currency. It's highly tradable,"
The US dollar serves as the backbone of the global economy and is considered the safest currency to hold. So in times of uncertainty, investors like to stock up.
edition.cnn.com
The DR and their Peso are facing decreasing income and increasing costs.
Covid and now the Russian war on Ukraine with consequent sanctions have increased losses on tourism income.
All imported goods, oil, gas, food staples, consumer goods and also domestically produced items are subject to inflationary costs.
Shipping costs have risen sharply.
The one source of Dominican income is the extremely high tax on imports, hitting all Dominicans.
Buying vehicles, consumer goods, grain imports.
There simply is no good news for Dominicans earning pesos, especially from the middle class on downwards,
Which includes the majority of Dominicans.
In addition to this Dominicans are still discriminated against making it very difficult to receive international travel visas,
Whereas other Nations do not require any visas.
To earn foreign income through work visas is almost impossible for the majority of Dominicans.
The remedy in the barrios seems to be music and drinking on their last pesos of the day.
