- Thread starter Gringo
- Start date
Whatever Happened to the Peso 60 to 1 by March 16 ?
I wouldn't call it hysteria...
They had been planning another national strike for 16 March (yesterday), but I admit I forgot all about it! I haven't heard it mentioned in weeks - too much distraction with the campaigning perhaps?
The last colossal drop for the peso happened after the previous 2-day national strike.
They had been planning another national strike for 16 March (yesterday), but I admit I forgot all about it! I haven't heard it mentioned in weeks - too much distraction with the campaigning perhaps?
The last colossal drop for the peso happened after the previous 2-day national strike.
I don't think I took a guess at 60 but with Hippo is starting his scenerio to steal the election by making things cheaper till then may be your answer along with the Central Bank giving 50% interest. It wont hit 60 till after May. I think it will go to 100 not 60 this year if that matters. The Central Bank paying 50% interest which is a big joke. Just my one stinkin peso!Gringo said:
Escott
gerd said:
It doesn't work that way. Price increases lagged behind the fall of the peso. Vendors now have to recover what they paid for the things they ordered when dollar was strongest. It will take time for prices to fall if the peso truly is strengthening.
We have had these swings before. Money from outside comes in, dollar falls a bit. Money gets spent or stolen, dollar gets stronger.
Everyone stunk it up! Let's see when May comes and the folks at DR1 keep stinking it up - me included? Hey all you guys come out of the woodwork and admit your smellyness.
Once we get close to election and Hippo pulls out his bag of sheninagans, you will see 60-1. End of April, early May.
Lots of loan money coming in, pushing the price down..but when that runs out and its time to pay interest on Central Bank certificates and other loans......there wont be money for it unless there is some serious government lay offs after elections (or tax increases if Hippo is back)....
Lots of loan money coming in, pushing the price down..but when that runs out and its time to pay interest on Central Bank certificates and other loans......there wont be money for it unless there is some serious government lay offs after elections (or tax increases if Hippo is back)....
I last changed Dollars at 55 to 1.
It ain't 60,but it sure made me happy!Now I spend my dominican salary until the Dollar goes up again,and it will! It did hit 60 to 1 on the streets of "Los Barrios"!Inflation is over 20% in just the first 2 months of the year.(DR1 Daily News) The IMF predicted only 50 % of that! Anyone want to bet that the peso doesn't devalue this year??I did just fine by keeping my Dollars in the USA,and "Averaging In " as the peso went from 35 to 55 to 1!Cris Colon
It ain't 60,but it sure made me happy!Now I spend my dominican salary until the Dollar goes up again,and it will! It did hit 60 to 1 on the streets of "Los Barrios"!Inflation is over 20% in just the first 2 months of the year.(DR1 Daily News) The IMF predicted only 50 % of that! Anyone want to bet that the peso doesn't devalue this year??I did just fine by keeping my Dollars in the USA,and "Averaging In " as the peso went from 35 to 55 to 1!Cris Colon
"There's always plenty of explanations, why the predictions didn't come true. "
Many people predicted it for April or May...including myself. So wait until then and then you can gloat. or maybe I will.
Many people predicted it for April or May...including myself. So wait until then and then you can gloat. or maybe I will.
To coin a phrase
That's why they call it "gambling". Seems to be agreement that medium-term (and particularly post-election) trends look bad, though.
That's why they call it "gambling". Seems to be agreement that medium-term (and particularly post-election) trends look bad, though.
Conchman said:
I also said May, but if I still lived in the DR and the peso DID hit 60:1 I'm not sure if I would gloat or cry
Here's to hoping that we are all wrong and 60:1 will never happen.m
Hmmn.. I had predicted March 10th. But, that was based on a continuation of lengthy blackouts. Yeah, it's getting close to election time and old Hippo knows that he will have to keep prices lowered and the lights on, if he has any chance of winning.Though, if the country starts defaulting on any of it's large foreign debt payments - that will shoot the peso to 100 to 1 and the D.R. will become Argentina.
How many times can you fool the fools?
Those who are celebrating dollars a $40 to $1 better beware. There is no free lunch. Banco Central is syphoning all the dollars in the streets to pay up the debt due on sovereign bonds and foreign debt. Hardly anybody else is in the market for dollars because the quantities you can buy are obsolete for any serious activity. Try getting big money and see how far you get or how much you have to pay. Or do you seriously think you can buy, let say US$100,000 at $45? Go to Vimenca and ask for big money. Or go to Maria Montez Street and see how much you can get. I will give you my buddies' number Mr. Blanco to see how much he can get you at $45.
People are holding on to their dollars no matter what. I am even borrowing money to pay my peso credit cards so I dont have to sell my dollars. I will hold on for as long as I can. There is no way I am going to sell cheap. Not when prices remain as high and will continue to go up.
What is the point of $45 to $1 when interest rates are higher than ever? How are businesses going to replace merchandise borrowing at usury rates? Besides, who is bringing in more new merchandise? Store shelves are half empty in most stores. Very little new comes in.
How can a deficit of almost RD$100,000,000,000 disappear? How can a peso be stronger when Banco Central continue to print new money everyday to pay up interest rates on those 36% to 50% certificates?
Those who believe these stories should go to Banco Central and buy certificates.
I will not be fooled by people who learned their economics at UASD or UTESA.
TW
Those who are celebrating dollars a $40 to $1 better beware. There is no free lunch. Banco Central is syphoning all the dollars in the streets to pay up the debt due on sovereign bonds and foreign debt. Hardly anybody else is in the market for dollars because the quantities you can buy are obsolete for any serious activity. Try getting big money and see how far you get or how much you have to pay. Or do you seriously think you can buy, let say US$100,000 at $45? Go to Vimenca and ask for big money. Or go to Maria Montez Street and see how much you can get. I will give you my buddies' number Mr. Blanco to see how much he can get you at $45.
People are holding on to their dollars no matter what. I am even borrowing money to pay my peso credit cards so I dont have to sell my dollars. I will hold on for as long as I can. There is no way I am going to sell cheap. Not when prices remain as high and will continue to go up.
What is the point of $45 to $1 when interest rates are higher than ever? How are businesses going to replace merchandise borrowing at usury rates? Besides, who is bringing in more new merchandise? Store shelves are half empty in most stores. Very little new comes in.
How can a deficit of almost RD$100,000,000,000 disappear? How can a peso be stronger when Banco Central continue to print new money everyday to pay up interest rates on those 36% to 50% certificates?
Those who believe these stories should go to Banco Central and buy certificates.
I will not be fooled by people who learned their economics at UASD or UTESA.
TW
Yeap well, one thing for sure is that things are never constant. Most of us thought that the momentum of the blackouts, uncertainty and dollar changing panic attacks was going to prolong itself long enough for things to deteriorate to the 60X1 level. Well, apparently people get used to things faster than I thought and Dominicans have gotten used to the idea of a devalued currency, stagnant economy, low sales and high amounts of tigeraje. So people are staring to get confortable again and things seem to be cooling down, but someone is sure on the lookout to take advantage of the 40X1 rate and boost the peso back at 45X1 next week and then brinig it down to the 39-38X1 and then buy low and watch the peso creep up to 43X1 and so forth until it stabilizes. Thats how the currency will reach its true value, atleast in our little country. And you dont need no diploma to see that.
Another little thing, before we know it, our currency will be semi stable and the eve of the elections will be here, and on the night of the 16th of may everyone will be in shock when the Hipster's points creep up to 32% and Leonel misses his only chance to everbecome president again when he finds out he only obtained 44%. And not even then, the peso will hit 60X1 because everyone will be expecting Hipolito to make fraud and stay in power.
Any takes on that?
Another little thing, before we know it, our currency will be semi stable and the eve of the elections will be here, and on the night of the 16th of may everyone will be in shock when the Hipster's points creep up to 32% and Leonel misses his only chance to everbecome president again when he finds out he only obtained 44%. And not even then, the peso will hit 60X1 because everyone will be expecting Hipolito to make fraud and stay in power.
Any takes on that?