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  1. #1
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    Default Dollar goes below 26 pesos

    I couldn't resist this one! Note the dollar goes below 30 thread was posted a week ago exactly. Today's rate is 25.5 - A fall of 15% in a week. Perhaps now some of you who don't live here can understand what this is about. How can you budget for even the simplest things on a weekly basis when every week your spending power is eroded in this fashion?

    Time to sack the staff - Oh and just one other thing, the electricity is still just as crap as ever and am I right in thinking that none of the national debt has actually been paid off yet? Why wait? unless.....

  2. #2
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    Default

    Where is it 26? Was still 30.19 on the ATM yesterday.

  3. #3
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    Default Isn't there a Danger to this ??

    Isnt there some threat of an economic danger with this "adjusted" and quick rise in the peso value?? Its been years since my Economics class, but artifically inflating the peso might explode? Didn't Argentina do that same thing? I know oneway to improve an economy is to return money to consumers for spending (something gw hasn't figured out yet), but surely there must be a downside to this rapid climb.

    Any thoughts?
    TEHAMA

  4. #4
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    Default Sending Money

    While I was sending money from an agency yesterday, November 10, I was able to get 27 to $1US. As I was sitting there they received a fax showing the rate change to 26-1. I believe that was thru Pronto Envio.

    Envios Boya, https://www.enviosboya.com/?x=42, is at 26.50 today.

  5. #5
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    Default Please clarify

    Quote Originally Posted by Simon & Nicky
    I couldn't resist this one! Note the dollar goes below 30 thread was posted a week ago exactly. Today's rate is 25.5 - A fall of 15% in a week. Perhaps now some of you who don't live here can understand what this is about. How can you budget for even the simplest things on a weekly basis when every week your spending power is eroded in this fashion?

    Time to sack the staff - Oh and just one other thing, the electricity is still just as crap as ever and am I right in thinking that none of the national debt has actually been paid off yet? Why wait? unless.....
    Sorry, could someone please explain, are we talking about the USD?? Because as far as I understand the CAD is hugely on the rise. Thanx guys.

  6. #6
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    Lightbulb

    They are talking about the US dollar.

    The Loonie is also down against the peso, just not nearly as much.

    The US dollar is down large against many currencies but it is down HUGE against the Dominican peso.

  7. #7
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    Default Your can not ration DR in normal thinking.

    Last year, X'mas, 1 US = 33 Pesos, this year, 1 US = ??? Pesos, let's wait and see.

    People in CB is manipulating the exchange rate with "??????" reasons. I believe they are lowering the value of dollar and buying dollar cheap from "tremendous extra pesos generated from the printing machines." This country, almost 75% of the dollars coming from Free Zone business. Every Friday, Free Zone needs to exchange the pesos to pay the employees. No choice to bargain, either you exchange in less amount of pesos or you don't pay the employees. "Tough shxt."

    Never see any county the exchange rate dropped so rapidly as here, or raised so rapidly as beginning of this year.

    If the exchange rate keeps on falling say, 1:25 or less, I dare to say, more than what you can expect the free zone will have big problems to survive, by then, let's see how the show is playing.

    1. Per Free zone association, the reasonable rate is 1:35 --1:40, then Free zone can survive. I think Free Zone will sacrifice quite a lot this X'mas.
    2. Did you see the cost of living coming down by 35-50%? NO, it is not.
    3. Do you believe this country can make 107 millions dollars in 4 month (if it is true, then the debts for this country will be soon paid off, but you know it is almost impossible) and pay the generators company? This country does.
    4. The banking reserved dollars from less than 200 millions dollars up to more than 400 millions dollars within few months, a great performance if by "NORMAL, REGULAR PERFORMANCE." , But, think twice?? Can DR do it?
    5. We, as foreigners in here, are happy if dollars appreciate, but the cost of living goes with the appreciation and more than the rate of the appreciation. For ex. the electric bills, foods....etc. Unfortunately, it is hard to come down once it is up.

    We are sad if the dollars depreciate, because the cost of living will be increased dramatically. What a shame.

    Bottom line: we all need to figure a way to survive just like those Dominicanos.

  8. #8
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    Default

    man, if this keeps up the pesos that I left with 3 months ago will pay for this whole next trip.

  9. #9
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    Default

    There were frezones when the dollar was USD1 = RD$17 i understand that it was more favorable to be able to pay employees with an exchange rate of 65 pesos per dollar yeah yeah yeah that's the AMERICAN WAY: **** THE LITTLE PEOPLE:

  10. #10
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    Default

    Grabbed the following from the CIA fact book.

    Although the country has long been viewed primarily as an exporter of sugar, coffee, and tobacco, in recent years the service sector has overtaken agriculture as the economy's largest employer, due to growth in tourism and free trade zones. The country suffers from marked income inequality; the poorest half of the population receives less than one-fifth of GNP, while the richest 10% enjoys nearly 40% of national income. Growth turned negative in 2003 with reduced tourism, a major bank fraud, and limited growth in the US economy, the source of 87% of export revenues. Resumption of a badly needed IMF loan was slowed due to government repurchase of electrical power plants.
    One would think that an artificially high peso would eventually undermine the financial health of the country now that Dominican goods and services are suddenly 40% more expensive. Regardless of the level the Dominican government wants the peso to trade at, the eventual decision will rest with the dollar holders. If they can not get fair value or profit margins many will chose a lower cost alternative that will not involve the DR. This ultimatly will hurt the country far more than any benefit derived from the current manipulation of the currency.

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