How much does your Peso buy Vs. the Dollar in the U.S.

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Golo100

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Jan 5, 2002
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Since the argument continues as to the value of the peso and how much it still buys in DR compared to the dollar in the USA here are a few comparisons using the prices at La Cadena Supermarkets in Santo Domingo and the West Coast chain of Albertsons in the U.S.A. Of course, all things are not equal and comparisons may vary. For example, I will be comparing mostly imported goods, as opposed to home grown items such as rice, platanos, beans, yucca which are much cheaper here in DR.
Albertsons Prices: Dannon Yogurt 8oz. .80cents ea. All flavors?Sprite,Pepsi or Coke 2 liter .89c ea.-- Can of coke .23c an once?Becks beer bottle 6 pack $7.99plus deposit ?Del Monte Fruit Cocktail 30oz can $1.49 the same for Albertsons brand $1.33?Candy Bars(Milky Way, Snickers), .27c an once, 10 pack Crunch Candy 5oz. $1.59, --Chicken of the Sea Tuna .60c ea.?Hunts Pasta sauce 0.79c ea.?Hebrew National Beef salami 5.98lb., Oscar Meyer Cotto salami 1.69lb., Albertsons Cooked Salami 1.99, Gallo Lite salami 5.99lb, Albertson Lunch Meat salami 2.59lb.?Mozaarella Cheese 4.99lb,--Albertsons 30 count medium eggs 2.99, 18 count eggs 2.99, jumbos dozen 2.99, medium doz. 1.79?Barilla pasta Farfalle 1.39lb, Barilla thin Spaghetti 1.39lb., DeCecco Spaghetti 1.99lb, DeCecco Fusilli 1.79lb.

Now, if you use the exchange rate of $26 pesos to a dollar here are the DR-La Cadena prices: Breyers Yogurt 8oz. 1.11 oz all flavors?Sprite,Pepsi, or Coke 2 liter .80.5c ea.?Can of Coke .03c an ounce?Becks beer bottle 6pack $7.11 no deposit req.?Ligo Fruit Cocktail 30oz can $1.34?Candy bars(Milky way, Snickers) .27c oz., 10 Pack Crunch 5oz. $1.27?Bumble Bee Tuna, Brunswick, Roland brands from .54c to .96c?Hunts Pasta sauce $1.42?Chef Salami $1.11, Caserio turkey salami $1.42, Sosua Super Special $1.08, Induveca $1.23, Don pedro Supreme $2.00lbs.?Mozzarella Cheese Rica $1.88, Sosua $2.27, San Juan $2.11 and Cheddar Cheese $2.11lbs.?Eggs local brands 30 count $1.83, 20 count $$1.25, dozen from .61c to .73c, jumbos about $1.00?Barilla Pasta Farfalle $1.31lb., Barilla Thin Spaghetti $1.04lb., deCecco Spaghetti .73c lb. Same for Fusilli

As you can see, the Peso at $26 to $1 is still very competitive and holds a respectable value for imported goods. Its important to note that items such as Cerveza Presidente 12oz. Bottle is at a super value of .60c each. Even lower at .54c is Soberana Beer. Miller 6 pack sells for $5.38, while Heineken is at $5.73 the six pack. One of our greatest values is Santo Domingo Coffee at $1.38lb.

Other notable super buys in spite of almost 100% increases in the last two years is the movie ticket. At $4.60 for premium sites like Acropolis, Diamond and Bella Vista Mall, where you meet ?La Cr?me de La Cr?me? it is still almost double below U.S. prices(almost 20% is taxes)

TW
 
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Timex

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May 9, 2002
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Great Post Golo

And don't forget gas at $ 2 U.S. dollars a gallon is not over-priced. But...........................

As things are costing more, and I mean EVERY DAY, there is an announcement about some absurd increase whether its electric, tolls, propane, most of us on this board will be able to afford them without any significant changes to our lives.

To fill my propane tank.
December 2001, it cost me $ 400 pesos, when it was 16 to 1 on the dollar. January 2003, it cost me $ 600 pesos, when it was at 25 to 1.

Dec 2001, 400 / 16 = 25 U.S. Dollars
Jan 2003, 600 / 25 = 24 U.S. Dollars

Thats good for me, but I'm sure thats not what they had in mind when they raised the cost.

What about the millions of Dominicans who are still earning last years salary??? They have seen a reduction of buying power by 50%. I saw a huge difference in the gifts being giving by the same people between 3 Kings Day, last year, and this year. Those that I asked said the same thing, everything is getting too expensive for them. And within the last two months, I hear of at least 3 house or colmado, robberies a week. Before that it was very rare to hear about a robbery.

Any way, a real good post, as usual.

Thanks
Tim H.
 
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GNYC

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Oct 8, 2002
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We can conclude that prices on many items are similar in the US and the DR but isn't the real question Earning Power.

I understand a monthly salary for a good position in a DR bank is about 25,000 RSD or $1000 USD.
In most major US cities a good position in the banking or financial industry will range from $75,000 per year and upward. Even after 36% off the top for Federal and State taxes plus Social Security witholdings it leaves $4000 per month clear.
Thats 4x the income, maybe more if there are any taxes on the Dominican bankers salary.

Gotta be extremely tough when prices are simliar and income is one fourth.

GNYC
 
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Golo100

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Jan 5, 2002
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Salary comparisons

I agree with the earning power difference, but on the other hand a large portion of a middle manager type person in the U.S. goes for rent or mortgage payments, which are substantially higher than in DR.

Clothing is alos more expensive in the USA. Any designer shirt will end up costing you new almost $10 to $15 dollars more for taxes. Car insurance and car repairs are also more expensive in the US side because of the hour-labor cost.

The typical doctor's appointment is US$20. Where can you get that in the U.S.?

The other thing that would be interesting is to compare how much people save on both sides. I have no figures on that.

TW
 
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Criss Colon

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Jan 2, 2002
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I can buy a Mitsubishi car,or "Jepetta" in the US for.........

Zero money down,Zero percent interest,and no payments until 2004!!!!! And without a "Tarrif of 20 or 30 percent on the car just to bring it into the country!!!The only thing that I can say is truely cheaper here than in the US are Labor Costs! From the shoeshine boy ,to the restaurant worker,to the maid to the gardener,and especially to the "SEX WORKER", my best friend here, "Se Llama"......Manuel Labor!!!
 
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GNYC

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Oct 8, 2002
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Many living expenses in the US exceed those in the Dominican Republic but I do not think the difference is that great (at least not in comparision to the earning power).

A middle class home in the New York area (excluding Manhattan) will probably cost $400-500K. But with low mortgage rates the monthly payment plus taxes and insurances may not be much greater than a home in the DR financed at 25% or more.
And a one bedroom apartment in a good area can be rented for $1200 a month tops. Maybe $2000 in Manhattan.

New York can offer value on clothing there are alot of sales and outlet stores.

Car insurance is expensive about $2000 for a car 3 years old but the cost of the car and gas is less.
And you do not need a car to get around there is excellent public transporation and taxi's.

Medical and Dental costs are all covered by the medical insurance any good employer will offer. Usually a copayment of $10 or $15 is all it will cost you.

As far as savings are concered many people contribute tax free dollars to a 401K plans. The maximum contribution is $12,000 per year, $14,000 if your over 50 years old.
Also Roth IRA's permit another $3,000 to $3,500 to be save for those who can afford it.

There are people in the US who may have trouble making ends meet but most live above their means.

Hopefully economic conditions will improve in the DR soon because it is not fair for people to work so hard for so little.

GNYC
 
carlos

carlos

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May 29, 2002
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golo...


as far as health insurance..the US offers more I believe. I work in Finance and both my wife and I are covered 100% health wise and it is not an HMO. Nothing is deducted out of my paycheck, company pays for it all. I only pay a $5 co-payment when I visit the doc which is not bad at all.


can u do a comparison on the agricultural products? I bet the DR will give you a better deal for ur dollar.

lets see...
 
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Jerry

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Jan 1, 2002
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cmedina07

Then you are with one of the better companies. I pay about $70 every 2 weeks and have a $15 co-payment. Just changed dental plans, so have not worked out all the details on it yet. But last dental plan they wanted me to pay $400 for a root canal and crown and the insurance paid the rest. A normal filling cost me $20. Hurt my arm once and had to go to the emergency room. $50 for them and another $150 by time I paid for the test, xrays and medicine. Of course the insurance picked up the rest. Sorry part of this, this has been one of the better plans. The company I work for has only about 53,000 employees so that might play a part. but guys I work with at a company with 140 have even a worse plan.

Jerry
 
carlos

carlos

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May 29, 2002
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Jerry,

I have to disagree with you. I work for Hedge Fund and our company is not bigger than yours. The difference may be that I work in the Fincnancial Market where they tend to pay more and take care of the employees a lot better as afr as insurance, not having to pay for bfast or lunch and so forth.

Our company takes really good care of us and manages a lot of money which may be the only difference. I would think that since u are part pf 53k employees u would get a better plan. It's all up to how much the company wants to pay up.

All in all, u are better off than those have have none.
 
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Pib

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Jan 1, 2002
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I pay RD$200/month for my insurance, my company pays the rest. Checkups are RD$30, the insurance pays the remaining cost. Some companies have insurance plans that also cover medication up to 85%. Sadly not mine. :(

My plan also covers "eye plan", but I don't know what it pays for. After having lost a pair of very expensive glasses I decided to buy the cheapest ones I could. RD$500 for my glasses is probably much less than my plan covers.
 
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Keith R

Keith R

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Jan 1, 2002
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Re: Salary comparisons

golo said:
I agree with the earning power difference, but on the other hand a large portion of a middle manager type person in the U.S. goes for rent or mortgage payments, which are substantially higher than in DR.

Clothing is alos more expensive in the USA. Any designer shirt will end up costing you new almost $10 to $15 dollars more for taxes. Car insurance and car repairs are also more expensive in the US side because of the hour-labor cost.

The typical doctor's appointment is US$20. Where can you get that in the U.S.?

The other thing that would be interesting is to compare how much people save on both sides. I have no figures on that.

TW
Click to expand...
Golo,
I have serious doubts about your mortgage payment comment. Rent may be much cheaper in the DR, but judging from my own experience in both markets and what I hear here on DR1 and from friends in the DR banking sector, the costs of buying a home are certainly not. In the first place, to buy an apt or home in the DR, one usually has to put far more cash down upfront than one would be required to in most markets (can't speak for Calif or NYC) in the US. Second, when home loan interest rates in the DR are up around 50% and the term is so compressed (still 5-10 yrs max, right?) while US mortgage rates are now 6.25%, terms are 15 or 30 yrs & so many lenders are offering low or no points for people with good credit (such as myself), the loan costs of buying property in the DR are considerably higher no matter how you cut it. Given that property values in decent neighborhoods of SD are approaching those of US markets such as the Washington DC metro area, I can't see where owning property in the DR -- at least in the better parts of SD or good coastal property -- is really cheaper in the DR these days. Maybe once long ago (and maybe again in the near future?), but not right now.
The designer clothes question depends on where you buy it in the US. I know some places in NYC where designer clothes are definitely as cheap or cheaper than they are in the boutiques of SD.
As for health costs, here in the US I rarely pay anything for a doctor visit under our health insurance, and when I do, it is more like US$10. I do have to pay higher costs for eyeglasses and non-routine dental care, but under our health plan in the DR (a worker health insurance plan of a major US multinational) these were not covered at all and frankly, I trust my dentist here in Northern Virginia better than the one I visited in SD.
My two cents worth (gee, what is that in peso terms these days? grin)
Best Regards,
Keith
 
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