- Thread starter sonny
- Start date
Value of Peso
The only things that I can think of are that 1) the envasadoras have just received shipments of gas to sell to the publicos, just in time for the weekend, 2) that the blackouts have shortened out by 20 minutes at a stretch, 3)everyone is trying to figure out how soon they will receive their Hipolito-promised 30% raises, and 4) the guys who REALLY control the tasa are drunk on Presidentes because they just finished calculating how much they are going to make with this latest scam.
The cambios I know are flush with US Dollars lately. I watched a pile of almost US$500k exchange hands, just the other day. Even the spread is down to about 0.75 these days.
No money to pay their bills; a lameduck president who is doing and saying absolutely nothing; a traveling, rambling president-to-be; the good ship La Republica Dominicana on auto-pilot headed straight for the icebergs of doom; and the tasa is DROPPING. Leonel ain't the pot of gold at the end of the rainbow, he is going to have his hands FULL of work. Maybe I am drunk, stupid, blind, and hallucinating.
Somebody slap me, please!
The cambios I know are flush with US Dollars lately. I watched a pile of almost US$500k exchange hands, just the other day. Even the spread is down to about 0.75 these days.
No money to pay their bills; a lameduck president who is doing and saying absolutely nothing; a traveling, rambling president-to-be; the good ship La Republica Dominicana on auto-pilot headed straight for the icebergs of doom; and the tasa is DROPPING. Leonel ain't the pot of gold at the end of the rainbow, he is going to have his hands FULL of work. Maybe I am drunk, stupid, blind, and hallucinating.
Somebody slap me, please!
In the past, whenever Baldie opened his mouth or issued a decree the peso would lose value, he's been doing less of that lately and just the fact that he is leaving is good enough reason to be optimistic.
I am told that there is are NO PESOS in circulation to buy dollars (Well very few anyway) there are dollars but no money.
There is a tight control now...probably until some already determined time when it wil be let loose so those in power can get big exchange rates after buying $ relatively low.
There is a tight control now...probably until some already determined time when it wil be let loose so those in power can get big exchange rates after buying $ relatively low.
I wonder if the rate is being manipulated before the handoff, so once Leonel is in power and it spirals to 80:1, Hippolito has made himself look good.
well there is a dinner tonight where all the big
Mucky mucks will be. John Taylor, the Under Secretary of the Treasury and noted economist will be the featured guest. The dinner is at the embassy and "everyone" will be there..
Maybe they will figure out a way out of this mess.
Could be that since all the tax proposals have said that everyone will have to pay taxes and for their electricity, there is some optimism in certain circles..
HB
Mucky mucks will be. John Taylor, the Under Secretary of the Treasury and noted economist will be the featured guest. The dinner is at the embassy and "everyone" will be there..
Maybe they will figure out a way out of this mess.
Could be that since all the tax proposals have said that everyone will have to pay taxes and for their electricity, there is some optimism in certain circles..
HB
It's at 43 and dropping.
Personally I think Hippo is up to his old tricks. Once Leonel steps into the "white house", all hell will break loose. Then baldy can say I told I was bringing the good times.
Time will tell, but I know one thing, the peso will not stay at it's inflated value for very long.
Personally I think Hippo is up to his old tricks. Once Leonel steps into the "white house", all hell will break loose. Then baldy can say I told I was bringing the good times.
Time will tell, but I know one thing, the peso will not stay at it's inflated value for very long.
The peso is heading down to $38 in the next few days geeee! man i'm messed up! i have lots of dollars but no pesos to buy what i need i'm getting frustraded..............................
someone please explain what's going on
someone please explain what's going on
Doesn't the Government have to pay off some loans this month or early next?? The Generation companies are also demanding that they get paid their US $ too!! InMHO, the drop is due to the government tweaking the rate so as to be able to buy U$D at a much lower rate & then once the U$D have been paid, they can let the rate go back up again!!
I wouldn't be a bit surprised to learn that a few Government members are buying THEIR share of U$D too knowing that the rate will HAVE to go back up within the next 4 - 6 weeks & CERTAINLY when the new administration takes office!! - Grahame.
I wouldn't be a bit surprised to learn that a few Government members are buying THEIR share of U$D too knowing that the rate will HAVE to go back up within the next 4 - 6 weeks & CERTAINLY when the new administration takes office!! - Grahame.
on top of that, you can be sure they are printing lots more brand new 2000 peso notes to buy up dollars at the bottom.....
I have no idea about Macroecnomics so please correct me if I am wrong, but how can everyone say that this is a government scheme....I mean Hippo tried almost everything...even strong arm tactics to try to bring the peso down around christmas. If he could actually do it then maybe he would have been re-elected right now. My original question stands...how are there so many dollars on the market all of a sudden, especially since we owe so many loans to be paid in dollars?
T
TiberiusMineola
Guest
44.25 in POP - Fri 9jul04???
2, 3, 4 weeks ago the Peso was trading @ 46.5 +- in POP; fairly consistent & stable. For whatever reasons. On July 9th - 44.25. In effect, the Pesos increased in value approx 5% in 1 week!! Something is going on? Or, . . do people at the top & in control know something @ the DR future economy & currency that most of us don't. DR1 said the DR cost of living incresed 60% in the past 12 months. I'm befuddled. With these #s, the bank disasters, the public health system falling apart, huge upcoming foreign debt, & the electricity situation barely tolerable, who's bidding the Peso up?? It doesn't seem to add up.
2, 3, 4 weeks ago the Peso was trading @ 46.5 +- in POP; fairly consistent & stable. For whatever reasons. On July 9th - 44.25. In effect, the Pesos increased in value approx 5% in 1 week!! Something is going on? Or, . . do people at the top & in control know something @ the DR future economy & currency that most of us don't. DR1 said the DR cost of living incresed 60% in the past 12 months. I'm befuddled. With these #s, the bank disasters, the public health system falling apart, huge upcoming foreign debt, & the electricity situation barely tolerable, who's bidding the Peso up?? It doesn't seem to add up.
Its definitely Hippo's crew bringing it down again, so they can buy dollars cheap and then make a fortune when the bubble pops. They put pressure on the exchange houses by threatening them (in many ways) - its relatively easy as long as all the big houses co-operate.
They figure they might as well do this one more time while they still can.
Of course it only works for a short time, since the black market would eventually take over the business.
They did the same thing back in November or December I think it was. The rate went from 45 down to 38 in a week. Exchange houses were 'visited' by military and police and told cooperation was in their best interest.
They figure they might as well do this one more time while they still can.
Of course it only works for a short time, since the black market would eventually take over the business.
They did the same thing back in November or December I think it was. The rate went from 45 down to 38 in a week. Exchange houses were 'visited' by military and police and told cooperation was in their best interest.
My take..
The outgoing administration is not paying debts (to generators, to bond holders......etc). Nor it is approving new loans. So a big chunk of goverment demand for US$ is absent.
There is a bond interest payment due later this month (don't know the exact figure, but it's north of US$10M), which Hipo will likely roll over into the grace period, which expires shortly after Leonel comes into power.
This is a well-orchestrated squeeze on Leonel to make him look bad by stalling all current payments.
Things will probably get ugly after Aug. Hope not.
The outgoing administration is not paying debts (to generators, to bond holders......etc). Nor it is approving new loans. So a big chunk of goverment demand for US$ is absent.
There is a bond interest payment due later this month (don't know the exact figure, but it's north of US$10M), which Hipo will likely roll over into the grace period, which expires shortly after Leonel comes into power.
This is a well-orchestrated squeeze on Leonel to make him look bad by stalling all current payments.
Things will probably get ugly after Aug. Hope not.
they dont even need to threaten the big exchange houses, they can pay them off with nice freshly printed 2000 peso notes. You can be sure they are all in on the big scam together....
I agree, printing money to pay debts and favors has always been the tool of the devil.
Thats why no politicians ever want to dollarize the economy, they would lose that all too powerful tool.
Thats why no politicians ever want to dollarize the economy, they would lose that all too powerful tool.
I don't see why everybody's thinking is all about government the Exchange Houses have too many Dollars nowdays not many pesos around at all major banks the tendency is down in order to preserve the economy if you go to a bank and try to open a certificate in dollars you will be getting almost the same as in the states certificates in pesos are down aswell, i hope i'm not wrong but i think that the pressure the business sector had on the currency in order to get rid of the Hippo man is off!....