I just saw the exchange rate is now about 43 and wanted to reflect a bit on what a change it has made in my life. I know that prices have gone up but not as much as the exchange rate, it does not seem to me, anyway.
When I first planned to come here, about 13 years ago the exchange rate was 50 to one, I was solidly going to be fine. Then by the time I got here, it plunged to 25 to a dollar (who knows why?) where I was really sorta freaked about it, wondering? Then it creaped back up to 35 where it stayed for years and years.
Now it is going back to where i first planned. I know it is harder for locals but for expats, it is good.
I just wanted to warn you folks who are planning on coming here that you should plan for this sort of fluctuation. Sure, maybe you can make it at 43, but could you make it at 35? at 25? these things happen.
As has already been pointed out, the peso is not tradeable....either alone or as a currency pair.....and I am not sure most people are capable if they could trade.
That having been said, the only way to even remotely protect your funds would be to keep half in dollars and half in pesos. That would provide a slight hedge against major moves either way. But that is probably not practical, nor wise, since the peso only massively strengthened once in recent history, after the IMF injected capital into the DR banco central to help prevent the the DR banks from toppling....and with it the economy. And even then, you would have warning.
By that I mean, when the armed guards are enforcing the government ordered exchange rate and its changing twice a day, the news is all about the health of a bank or banks (Banninter), dollars are scarce/unavailable except for small amounts at the banks, you have to order dollars several days in advance........and you have nerves of steel or inside knowledge..............then and only then should you exchange dollars, euros, pounds, etc., for pesos.....and hang on.
To my knowledge, one DR poster did......and I am sure, did quite well.
For the rest, the likelihood of the peso going down in value (up in the exchange rate) is a far more likely scenario.....and that is the one people should protect against...for now.
For those with short memories or no memory of the banking crisis that gripped the DR for years, I submit you do a little reading on the current economy in Venezuela that has created a three tier exchange rate, has 50%+ current inflation, and has companies pulling out because they cannot convert their bolivars to dollars (shortage)....witness the airlines curtailment of flights into/out of the country....or the shortages of toilet paper, cooking oil, food.....that must be imported and paid for in dollars/euros etc., that the government just does not have.
The plan therefore for most expats living in the DR with dollars, euros elsewhere, means basically keeping on hand/exchanging only the pesos you need for current needs.
Finally, understand DR banks are not insured, and any monies you have in dollars, euros, etc., should probably be kept in your home country and exchanged/sent on an as needed basis.
Respectfully,
Playacaribe2