Historical Exchange Rates per U.S. Government

[playacaribe2]

With the perceived good news that the country may soon re-open for tourism, the decline of the value of the peso is slowing.....at least for the moment.

When the reality hits, that tourism, when it does return, will look nothing like it did pre-pandemic in terms of numbers and revenue, the peso will likely drift downward.......albeit slower..........but 63:1..........absent some major boost in revenue.........still appears to be the target for the end of December.


Respectfully,
Playacaribe2

 

[slowmo]

The only reason the peso has stabilized against the US dollar in the last few days is that the US dollar has been dropping worldwide.

 

[playacaribe2]

The only reason the peso has stabilized against the US dollar in the last few days is that the US dollar has been dropping worldwide.

The only major currency gaining meaningfully against the dollar is the Euro (Yen is actually falling)..........after the ECB finally adopted a whatever it takes attitude to save their industries and economy. The 10 billion bailout of Lufthansa and the bonds being issued to save the southern European countries comes to mind.

USD/EURO has little effect on USD/PESO.........

And the peso has not stabilized.......its downward trajectory has merely slowed.


Respectfully,
Playacaribe2

 

[playacaribe2]

Another good reason not to "invest" in peso certificates.........or for those who already have..........when the maturity date arrives........time to look elsewhere;

Only more loans can avert massive bankruptcies

<p>Santo Domingo.- Economy Minister, Juan Ariel Jiménez, warned Fri. that due to the impact of the COVID-19 pandemic, it will be necessary to resort to more loans to boost the economy and avert a massive closure of companies. He said the measures are necessary for economic activity to continue...

dominicantoday.com

The peso weakened rapidly in the first quarter, stabilized a bit in the second, and now looks to begin to weaken again............as the realities of Covid-19 on the national budget and also on tourism not returning to anywhere pre-Covid-19 levels for at least the next 18 months..........finally sets in.

And as an observation, when government coffers begin to run dry.................new or increased taxes are not far behind.


Respectfully,
Playacaribe2

 

[irsav]

Strong dollar is a bad thing for locals but a WONDERFUL thing for expats and American visitors. Weak dollar is a wonderful thing for locals but HORRIBLE news for expats and American visitors. When dollar is weak and peso high visitors are better to reschedule and postpone their trips. It is a common knowledge.

 

[playacaribe2]

Strong dollar is a bad thing for locals but a WONDERFUL thing for expats and American visitors. Weak dollar is a wonderful thing for locals but HORRIBLE news for expats and American visitors. When dollar is weak and peso high visitors are better to reschedule and postpone their trips. It is a common knowledge.

And that has happened exactly once over the last twenty years.........and only for a brief period.............off season..........wit little effect on tourism..........

The peso is slowly and consistently weakening year over year. From 1:1 parity with the dollar..........and despite a surging market in tourism since the late 1990's.......corrupt inept governments have all but insured it is headed to 100:1 in the not to distant future.

Respectfully,
Playacaribe2

 

[irsav]

And that has happened exactly once over the last twenty years.........and only for a brief period.............off season..........wit little effect on tourism..........

The peso is slowly and consistently weakening year over year. From 1:1 parity with the dollar..........and despite a surging market in tourism since the late 1990's.......corrupt inept governments have all but insured it is headed to 100:1 in the not to distant future.

Respectfully,
Playacaribe2

I must agree. Corruption in all Third World banana republics always has been horrendous. Including our beloved Dominican Republic. God forbid to have any other activity here except enjoying the beach during the beautiful Dominican day and chasing chicas after the wonderful Dominican sunset. Just GOD FORBID!

 

[El Rey de Mangu]

I must agree. Corruption in all Third World banana republics always has been horrendous. Including our beloved Dominican Republic. God forbid to have any other activity here except enjoying the beach during the beautiful Dominican day and chasing chicas after the wonderful Dominican sunset. Just GOD FORBID!

Haloperidol. That's what you're looking for.

 

[playacaribe2]

The Central Bank today has lowered its benchmark lending rate from 3.5% to 3.0%, reacting to current weaknesses in the economy;

https://dominicantoday.com/dr/economy/2020/09/01/economy-shrunk-around-8-5-in-july-central-bank/

Coupled with that is an inflation rate that is running hotter than was budgeted or expected.

Bottom line: The peso which has been taking a breather in the second quarter, looks to start declining again.


Respectfully,
Playacaribe2

 

[johne]

The Central Bank today has lowered its benchmark lending rate from 3.5% to 3.0%, reacting to current weaknesses in the economy;

https://dominicantoday.com/dr/economy/2020/09/01/economy-shrunk-around-8-5-in-july-central-bank/

Coupled with that is an inflation rate that is running hotter than was budgeted or expected.

Bottom line: The peso which has been taking a breather in the second quarter, looks to start declining again.


Respectfully,
Playacaribe2

Would it be safe to say: Peso at 60 by Christmas?

 

[irsav]

Would it be safe to say: Peso at 60 by Christmas?

Any chance 65 ? It would be a GREAT Christmas gift for all expats!!!!

 

[DR Solar]

Has been stable and NO movement for some time. Been waiting for 60 for months.

 

[playacaribe2]

Would it be safe to say: Peso at 60 by Christmas?

It already hit 60 for a brief period earlier this year at the cambio's when dollars were scarce.

I think it would be safe to say 60 by Christmas is highly likely given the pesos performance this year.

If the downward trajectory of earlier in the year materializes again............you could very well see 63.

Given the state of the current overall economy, the next time it hits 60, it will likely stick.

Respectfully,
Playacaribe2

 

[johne]

It already hit 60 for a brief period earlier this year at the cambio's when dollars were scarce.

I think it would be safe to say 60 by Christmas is highly likely given the pesos performance this year.

If the downward trajectory of earlier in the year materializes again............you could very well see 63.

Given the state of the current overall economy, the next time it hits 60, it will likely stick.

Respectfully,
Playacaribe2

60 is easier to do in my head than 63. LOL. No need for a calculator to check the price.

 

[slowmo]

60 is easier to do in my head than 63. LOL. No need for a calculator to check the price.

You must be gifted. Most posters were struggling when it was 50.

 

[johne]

You must be gifted. Most posters were struggling when it was 50.

LOL

 

[johne]

At 63 you'll do 60 in your head and know that the item is going to be cheaper than your 60 calculation. Then you know you have a bargain.

 

[Luperon]

60 is easier to do in my head than 63. LOL. No need for a calculator to check the price.

I was trying to contact to the great Ccccccc and in a dream he told me the math is much easier at 100 to1!!!!!!
Cçccccccc

 

[irsav]

I was trying to contact to the great Ccccccc and in a dream he told me the math is much easier at 100 to1!!!!!!
Cçccccccc

We all are actively waiting for 100. ASAP !!!
It is VERY important for us.

 

[Yourmaninvegas]

The trick I use to always know the value of a 500 DOP note.
57 500 DOP = 8.77 USD
58 500 DOP = 8.62 USD
59 500 DOP = 8.47 USD

Gives a reference point and you just do the multiplication. At 58 to 1 5000 pesos is 86.20 USD.