Dollar goes below 26 pesos

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

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

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.

Please clarify

Simon & Nicky said:

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.....
:tired:

Click to expand...

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.

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.

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.

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

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:

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.

Click to expand...

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.

Erickson,I didn't realize that you were a Socialist,and

and Anti-American!
Have you ever visited a "Free Zone"??

Did you notice all the armed security guards holding guns to the heads of the poor workers?? CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC

EBONYJEFF, thats kinda what I was thinking. You can only manipulate the market so much until one realizes the global implications and adjust the peso true value accordingly. But what has the New Administration done to make them "think" that this would work in the long run. Perhaps it just a temporary show for business dealings with South America?

The timing is very suspect in my opinnion. The dollar has dropped entirely too far, too soon since August (election) and its not even December yet. If it continues at this pace by year-end, it would half of what is was in August.

I see one major f**k-up around the corner. A rollercoaster comes to mind.
TEHAMA

As the Pesos? value against the US dollar does not seem to be in any way controlled by any market forces only by the whim of the government then you can conclude that the previous administration manipulated the exchange rate, coincidently to the benefit of those with dollars, to buy cheap Pesos. Notice that this was toward the end of the last administration. Obviously they had dollars at the time.

This party then undoes the work of the previous party to bring the Peso back down to serve their needs being that they have external debts in Dollars that can now be paid at a discount and they certainly had Pesos in their personal accounts so it all works out well for them.

All this talk of the Peso should be at 35 to 1 or whatever is completely arbitrary as there is no true market value and that is what will hurt this country in the long run so for all those living here you have to anticipate the rate that would best meet the government?s needs at any given moment and position yourself accordingly.

That?s the game we?re all trying to play and just like going to the casino it?s a gamble. The trick is knowing when to flinch (not that I know).

Why a different rate around the country?

I got 10,000 pesos from an ATM in Las Terranas yesterday and my bank on the online account charged me $396.08 - which comes to about 25 pesos. At least I think that is right. One of my Domincan friends here explained that there was always a better exchange rate for pesos/dollars in the capital than up here on the Samana Penisula? Can anyone explain this? It is perhaps, from the high cost of transporting all those used 20 peso notes back down to the central bank via gua-gua?

Also - As I understand it, it is also a direct policy of the Bush Administration to allow the dollar to fall against the world currencies in order to make US exports cheaper and help the balance of trade defecits. Any thoughts on how will this effect the peso/dollar exchange?

- ahora - off to the beach, which is free of charge.

Thank you all for all your posts - I have been reading this board for a year before I came here. (I ignored your advice to come and check it out before moving here since I have already lived in Grenada, Puerto Rico and Haiti. And after one has lived in Haiti, one can live anywhere).

MountainAnnie

Peso in Cabarete?

C'mon you guys - what short memories we have?
3 years ago the peso was 18 to US$. 2 Years ago it was 22! So what's wrong with 25 as it is on the street now?
Now - if we can only get all of the greedy ba.....ds in Cabarete's bars and restaurants to put their prices back to where they were before........??? We've raised the questions in town with them and generally just get a load of BS about the costs of items from their suppliers/wholesalers, etc. Some comodities are coming down!! Proves that there are some semi-honest traders about.
Without naming names, there are places around that have reduced their menu prices by up to 30% in the last 2 days! Others have dropped their fish and seafood prices as their supply costs have gone down.
However, for example, there are still those around who continue to charge RD$150 for a glass (half a glass really) of red wine - that's US$6!!! AND we know that you can buy the same bottle at the supermarkets for RD$141!!! So, all you retailers need to wake up and stop being greedy - go back to your 2.5 times profit margins before you drive the tourists outa here.
By the way - we're on pesos from CD's so we're still smiling! RD$100 is still RD$100 - it just buys less!
In a nutshell, we're still boycotting the greedy ones and giving our local business to those that are trying to keep the costs to a reasonable level.

TEHAMA said:

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

Click to expand...

My first thought is that you need to get over the fact that Kerry lost big and move on.

My second thought that this quick rise in the Peso is going to be disasterous and start to mean something in 6 months and then there will be another quick change to be even more disasterous all over again.

Escott

Peter & Alex said:

In a nutshell, we're still boycotting the greedy ones and giving our local business to those that are trying to keep the costs to a reasonable level.

Click to expand...

On a side note, don't be afarid to post the names of the good and the greedy ones. Ideally in another thread, thanks.

escott- not sure what you mean by BIG TIME. 50% of the population is not at all near a landside. Please dont get me started on the Village Idiot!

I agree to the potential danger ahead. Plan carefully folks.
TEHAMA

WHy discuss this at every turn when it has nothing to do about the DR. One mans trash is another mans treasure. You lost, move on.

I anticipate big problems resulting from the strengthening of the peso is such a short time for no reason whatsoever. It will get very dicey.

Someone posted somewhere about real estate prices falling. My guess is that prices could go either way - up to adjust for the weaker dollar, or down because with a higher cost of living, living in the dr is less desirable. Any concrete changes thus far? - D