A team of experts from the International Monetary Fund (IMF)are in the Dominican Republic for their annual visit.They have reminded the Dominican Republic that they are willing to provide permanent advisiry services to the Government.They say that is the first step to transparency and accountability within the Government.There is one problem however,the Dominican Government has to invite them to come in.Weeeeeeeel now,can anyone guess what they (THE IMF) were told about their generous offer? "It is NOT NECESSARRY!!!!.............I mean how many bank robbers take the police along on the heist!!!!!! :What A Country"! (This info is on the DR1 Daily News Page,But you can't make this "STUFF" up!).....I am not a "Fan" of the IMF,but they gotta be a step in the right direction,right? CRIS
- Thread starter Criss Colon
- Start date
Good news for the Dominican Economy!!!!!!!!!
Criss, The price of the peso was for a long time inflated, or should I say setup artificially. The exchange rate and along with double digit pay increases and the ever famous electricity rates has effected exports, tourism, and manufacturing bases.
With the new exchange rate manufacturing will be good and export prospects will also increase. Tourists will find DR a cheaper place now too. This is just a panic stage when everyone is trying to figure out the new conversion effects. A few weeks more and things will settle down.
If you really look at it gasoline is actually cheaper now in DR than it was 2 yrs back. I paid for 17 gallons @40 pesos / gallon RD$680.00 or at 16.5 to 1$ a total of 42.21 USD.
Today gasoline at 56 pesos / gallon I would pay USD38.08 for 17 gallons with the exchange at RD25.00 to a US$.
It may be too early to press the panic button and get the IMF in at this stage. Prices will be re-structured as soon as sales drop more and DR will once again become a cheap paradise.
I have not been there since August 2002 but, I am sure that all car dealears are loaded with cars they cannot sell, all luxury goods in those fancy farmacies are collecting dust also. Supermarkets are probably throwing away expired imported goods which can be substituted with local stuff.
Now people loke Golo are definitely losing their purchasing power with the peso conversion, but on the other hand, the price of a platano will not be affected to the same percentage as that of Wonder bread and Campbell soup.
What needs to be done now is to get the electricity act cleaned up and that will start streamlining things.
Just my two cents.....
With the new exchange rate manufacturing will be good and export prospects will also increase. Tourists will find DR a cheaper place now too. This is just a panic stage when everyone is trying to figure out the new conversion effects. A few weeks more and things will settle down.
If you really look at it gasoline is actually cheaper now in DR than it was 2 yrs back. I paid for 17 gallons @40 pesos / gallon RD$680.00 or at 16.5 to 1$ a total of 42.21 USD.
Today gasoline at 56 pesos / gallon I would pay USD38.08 for 17 gallons with the exchange at RD25.00 to a US$.
It may be too early to press the panic button and get the IMF in at this stage. Prices will be re-structured as soon as sales drop more and DR will once again become a cheap paradise.
I have not been there since August 2002 but, I am sure that all car dealears are loaded with cars they cannot sell, all luxury goods in those fancy farmacies are collecting dust also. Supermarkets are probably throwing away expired imported goods which can be substituted with local stuff.
Now people loke Golo are definitely losing their purchasing power with the peso conversion, but on the other hand, the price of a platano will not be affected to the same percentage as that of Wonder bread and Campbell soup.
What needs to be done now is to get the electricity act cleaned up and that will start streamlining things.
Just my two cents.....
Criss Colon said:
Criss,
You mean, how many bank robbers take embezzlers and extortionists along on the heist?
I read in "The Economist" last week that the IMF has been "helping" Bolivia for 17 years now. The result of this "assistance": Riots, political instability, economic collapse.
Think of it like this: You borrow money from a loan shark (in this case, international banks and the World Bank) in the name of your mother (in this case, Quisqueya) at 1% weekly interest, compounded. With the money, you buy heroin (in this case, bullshit projects that never happen with the money really going to Swiss banks) from a partner of the loan shark (US, Spanish corporations). Then the loan shark (IMF) says that he'll "advise you" on how to beat up your mother to get the money back - with interest.
REMEMBER WHERE YOU HEARD IT: ALL DOMINICANS WILL BE CURSING THE NAME OF THE WORLD BANK AND IMF EVEN LOUDER THAN THEY NOW CURSE THE NAME OF UNION FENOSA WITHIN THE NEXT THREE YEARS. In my opinion, they should also curse the name of the corrupt ratings services, such as Standard & Poors and Moody's, whose reports on the Dominican economy and the sovereign debt are as glowing as the reports were for Enron about 18 months ago.
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The Israeli Consulate in the DR has said that they can fix the Electricity problem in 6 months. I read that here on DR1 and don't know if the government had any desire to fix anything then but maybe now they may.
Who knows...
Who knows...
Re: Re: Good news for the Dominican Economy!!!!!!!!!
Dude, you could be an economy professor anywhere. That was a thing of beauty.[B]Porfio_Rubirosa[/B] said:
Hey missing_DR
Wrong!!! My purchasing power has not been reduced. I just bought two incredibly sharp jackets at SASCH for less than $1500 pesos and a couple of turtle necks at $295 each. It was the steal of the century at 70% discount for items that look like a million.
I eat platanos and rice and beans just like all Dominicans. The ones who are losing their purchasing power are the stupid members of the PRD party, who are about 46% of the population. And for them I am happy they have to eat their sneakers for dinner. Let them chopos starve. They deserve it. They should all go and bend their knees in front of Hippo's new bronze statue at the Air Force and beg for jobs and subsidies. I don't need them.
I have more dollars in hand than 99% of Dominicans and my wallet smells like Bush's wallet. It's a Louis Vitton packed with gold credit cards, all paid up and hundreds of thousands of pesos and dollars with available credit, which I don't need, because my cash flow exceeds my expenses by 20 times.
Let the war gor. Let's kick Saddams ass. Go Bush. Make my day. I want that desert rat served to me in a plate. I would pay $120 pesos a gallon to see that asshole deep in sh-t.
TW
Wrong!!! My purchasing power has not been reduced. I just bought two incredibly sharp jackets at SASCH for less than $1500 pesos and a couple of turtle necks at $295 each. It was the steal of the century at 70% discount for items that look like a million.
I eat platanos and rice and beans just like all Dominicans. The ones who are losing their purchasing power are the stupid members of the PRD party, who are about 46% of the population. And for them I am happy they have to eat their sneakers for dinner. Let them chopos starve. They deserve it. They should all go and bend their knees in front of Hippo's new bronze statue at the Air Force and beg for jobs and subsidies. I don't need them.
I have more dollars in hand than 99% of Dominicans and my wallet smells like Bush's wallet. It's a Louis Vitton packed with gold credit cards, all paid up and hundreds of thousands of pesos and dollars with available credit, which I don't need, because my cash flow exceeds my expenses by 20 times.
Let the war gor. Let's kick Saddams ass. Go Bush. Make my day. I want that desert rat served to me in a plate. I would pay $120 pesos a gallon to see that asshole deep in sh-t.
TW