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Thread: Article about Peso and Dollar in Dominican Today

  1. #1
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    Default Article about Peso and Dollar in Dominican Today

    I don't understand what this means. Is the dollar stable or is the peso stable and does it matter?

    Judy



    From Dominican Today online newspaper

    ECONOMY October 22, 2018 | 3:18 pm

    Dominican peso ‘stable’ as dollar hovers at historic high

    Santo Domingo.- The US dollar remains stable against the Dominican peso in the prices of Dominican Republic’s currency market, according to recent reports by the Central Bank.

    On Monday however the American currency reached RD$49.94 pesos to sell, and RD$50.02 pesos to buy.

    The $50.02 peso-per-dollar mark is the sharpest devaluation of the Dominican currency since 2003, amid the financial crisis that sent the national economy into a tailspin and the dollar at RD$57.00 to one.

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  3. #2
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    Quote Originally Posted by judypdr View Post
    I don't understand what this means. Is the dollar stable or is the peso stable and does it matter?

    Judy



    From Dominican Today online newspaper

    ECONOMY October 22, 2018 | 3:18 pm

    Dominican peso ‘stable’ as dollar hovers at historic high

    Santo Domingo.- The US dollar remains stable against the Dominican peso in the prices of Dominican Republic’s currency market, according to recent reports by the Central Bank.

    On Monday however the American currency reached RD$49.94 pesos to sell, and RD$50.02 pesos to buy.

    The $50.02 peso-per-dollar mark is the sharpest devaluation of the Dominican currency since 2003, amid the financial crisis that sent the national economy into a tailspin and the dollar at RD$57.00 to one.
    Stable would be a relative term.

    Has the peso moved up/down by 3 or 4 pesos against the dollar in one week or one day.....No.

    Has it been devaluing at a faster pace over the last 6-12 months....yes.

    Will it collapse in the near term.......No.

    Will devaluation of the peso continue at a slightly quicker pace as has been seen in the last 6-12 months.......probably.

    The wild cards are held by both the US and the DR.

    If the DR raised borrowing rates last month in lockstep with the US............the peso would have likely held under 50 until the New Year. But they did not.....thus the peso weakened a little quicker against the dollar than most expected.

    If the US raises its borrowing rates again in December as is currently anticipated and the DR does not........you may well see the peso lose more ground.

    The DR has been on a bit of a borrowing binge and a lot of that borrowing needs to be re-paid in dollars, which now requires more pesos needed to convert to dollars, which then requires decisions on the part of the DR whether to further devalue the currency, increase their international reserves of dollars, raise interest rates, etc.

    Lots of moving parts to consider...........but the overall direction is pretty clear.......the peso looks to continue to weaken against the dollar......for the foreseeable future. The only thing uncertain is the pace of the move.

    Respectfully,
    Playacaribe2

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  5. #3
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    Thanks. Economics was never my strong suit and the newspaper doublespeak doesn't help. You did!

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    Why is XE.com showing rate at 49.2 since yesterday?

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    https://www.oanda.com/currency/converter/

    This one is showing 49.6860 These are not the Holy Grail. DR currency is not on the top of the list for these places.

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    Quote Originally Posted by rubio_higuey View Post
    Why is XE.com showing rate at 49.2 since yesterday?
    Good question.....but here is the official Bancorp central rates.

    https://gdc.bancentral.gov.do/Common.../tasaus_mc.pdf

    Respectfully,
    Playacaribe2

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    DAMN! I wish CCCccccccccccccccccccc was alive to see this!

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  11. #8
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    You provided a good explanation in simple terms. Thanks.

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    Quote Originally Posted by rubio_higuey View Post
    Why is XE.com showing rate at 49.2 since yesterday?
    XE is my go to site for exchange rates for COP,CAD and DOP but they have had the DOP wrong for weeks now. I sent them an email about it and they never responded.

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    The official rate put out by the central bank here in the DR, Banco Central, is the correct one to use as per the link in post #6.

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