$US to Peso

S

Stephen

Guest
Today I read in DR1 that exchanges etc have agreed to hold the value of the peso to a certain amount.

I have to buy a new small second car this month, so can anyone give me any advise as to how much I should change about $20,000 US for in peso's to buy the car.

Today I got $20.10RD for a check that I cashed. Will it go higher this month or should I change it at this rate???????

Thanks
 

GNYC

New member
Oct 8, 2002
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Does anyone know the reason for such a devaluation in the Peso?

Is it really likely to hit 30 to 1 vs. USD?
If so has anybody heard when.

GNYC
 

Larry

Gold
Mar 22, 2002
3,513
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Gene

Know you know what I was talking about that night in the chat room.No confidence in peso.
Larry
 

Golo100

Bronze
Jan 5, 2002
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Who cares?

The higher it goes the better. While the dollar goes up, interest rates are also going up sky high, so if you got dollars in equal or higher amounts than pesos invested, you got nothing to worry about. Let the majority of Dominican suckers eat crow. I certainly dont worry about it. Some people feel that social unrest and the ongoing problems can cause tourism to go down. Thats no problem either. We have too many hotels and privatized beaches for the benefit of tourists who pay less than US$50 a day. let them go somewhere else.

This relative peace and "stable" economy is making me jeetery. I look for action. We need to join the rest of the world. Anarchy is already here, but undercover, because it is being used by a few to subdue the rest. We should all do whatever the hell we please and let the chips fall where they may. Lets go for 50 to 1 now!!

TW
 

sjh

aka - shadley
Jan 1, 2002
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www.geocities.com
peso goes from 17 to 23 in one year thats a 35% loss

your 24% interest rates on DR pesos from a year ago are a 11% loss

Hedge your bets people this roller coaster ride has just begun
 

Ken

Platinum
Jan 1, 2002
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495
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I'll be surprised if they don't get it stabilized. There have been periods like this before during the 6 years that I have lived here. During Balaguer's last years in office, for example, when he was printing money to pay for the renovation of the Colonial Zone, etc., in anticipation of huge crowds coming to Santo Domingo for the 500th anniversary of Columbus' arrival.

When I got here in 1986, the rate was 2.5 to 1. The increase between then and now is more than 1 peso a year. But it didn't increase that it. There were periods of rapid increase, then longer periods of relative stability. This time could be different of course; vamos a ver.
 

mondongo

Bronze
Jan 1, 2002
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Shadley, any ideas on how one can hedge the currency risk?

EuroQuestion: anyone know how the Euro/DR exchange rate has done over the last year?
 

Ken

Platinum
Jan 1, 2002
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mondongo said:
EuroQuestion: anyone know how the Euro/DR exchange rate has done over the last year?

This is not scientific, only based on my recollection of having walked almost daily past the rates posted at the exchange places on the main street of Sosua. Seems to me the rate for the Euro has fluctuated more than that for the dollar or Canadian dollar, but has increased more than the Canadian dollar. Yesterday, as I recall, the rate for the Euro was about RD$1 less than the US dollar, but it was higher than that for the Canadian dollar, as it consistently has been during past year to the best of my recollection.

There were a couple of very short periods when the rates for US dollar and Euro posted on these boards were equal or nearly so, but usually the US dollar has been higher than the Euro.

Again, not scientific, just based on recollection.
 

mondongo

Bronze
Jan 1, 2002
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Ken, did you happen to notice what the buy/sell spread is on the EURO?

Another question: Is there a fee that the banks/exchange houses charge? Or is the fee implicit in the spread?
 

Ken

Platinum
Jan 1, 2002
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Mondongo, the signs I see are put out by the change banks along the main street of Sosua. They post only what they are paying for the dollars that are exchanged with them by the tourists. Whatever else they are doing isn't posted there. Sorry I can't help you.
 

tht

Master of my own fate.
Oct 10, 2002
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Planet Earth
I tried to find the historical quotes for EUR/DOP, all I found was Listin Diarios front page from Feb. this year. They were quoting 14.19 for the Euro then, and 16.38 today. I believe these are central bank rates, but they still reflect the depreciation of the pesos, around 15 %. Also nice to know is that the USD has depreciated against all the major currencies this year. 9 % against the Australian $, 11 % against EUR,
8.1 % against Yen, 12.4 % against Swiss Franc and 7.5% against Pound Sterling, but it has appreciated against DOP (15 % or whatever it is). That tells me that the Dominican Pesos is on the slide. I wouldn?t hedge this one against anything, but cut my losses and get out of pesos ASAP. Unfortunately, if your hard earned USD, now converted to Pesos, is on a 12 month CD certificate, well, perhaps you?re stuck with the pesos until it gets to 25. If the pesos keeps depreciating, sooner or later most people will try to get rid of it and by back USD. Market forces will take control, when people sell pesos the price on pesos goes down, the same group of people buy back USD and the price on USD goes up, and the process accelerates.
 

Ken

Platinum
Jan 1, 2002
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495
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That rate of 16.38 for the Euro is a far cry from the 18.60 the change banks on the main street of Sosua are paying today. And I'm sure there are places in the DR paying more than that.
 

tht

Master of my own fate.
Oct 10, 2002
849
154
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Planet Earth
I said, I believe it's CB rates, which is for US$ 17.56, and not 20 something.

Nov. 28th. Just realized that these are the preferred CB rates, in reality just a dream rate, meaningless. I apologize.
 
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Golo100

Bronze
Jan 5, 2002
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Isn't it a little late to worry about the rate?

What were you guys doing back in the early 1990's when the rate hardly moved? Weren't we supposed to be making a killing with the high interest rates being paid in certificates? Remember, since 1990 interest rates on CDs and commercial paper have never gone down below 16% for $1million pesos or more.

All smart thinking people knew then, that it was a matter of time before Balaguer would die and the PRD would come into power. Everytime the PRD goes out of power the economy booms because other governments do not have to feed 1,300,000 members. But when the PRD comes to power we must all prepare.

Look at this, using December figures here are the rates for peso to dollars in the last few years: 1998=15.8 1999=16.00 2000=16.67 2001=17.14 2002=22

Every peso invested up to 2001 had almost no slippage in value, yet it produced as much as gold rightfully invested.

Like Enrique Iglesias sings:" I don't know whyyy,whyyy, I love to see you cry, I don't know whyyy, whyyy, it makes me feel like that"

TW