question on the exchange rate effects

Sep 19, 2005
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In the tourist areas does the price of things just go up as the rates gets worse for the locals? Ie do they realize that the dollar is getting the tourist more money and then just raise the price. I remember 3 years ago when i was there the rates was about $18 pesos per american dollar. I noticed that something that cost about $100 american( $1800 pesos) then now costs the same $100 american($3200 pesos) now!... the price rose with the exchange...is that very common?...if it is the benefit of the high dollar is diluted.......

another question if I make deposits into MY gf account, does it convert right into $RD or does it sit as us dollars until such time as i convert it? If it converts right away, is there a way to have US funds sit as US funds until such time as I want to convert or a withdraw is warranted there? Id ask myself Via phone, but my spanish isnt up to the level of technically important conversation....especially in the large funds dept ha ha.....bob
 

Ken

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Jan 1, 2002
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Certainly prices go up. So much of what is used here is imported and must be paid for in dollars. If a merchant must pay more pesos to buy a dollar to pay for what he imports, then he is going to charge more pesos when he sells the item.

This is over simplified, but it gives you the idea.

What doesn't go up his wages and salaries. So you can see what happens. Prices go up but the money earned buys less for the all ready hard pressed Dominicans.

What kind of account do you have, and where is the bank that the account is with?
 
Last edited:
Sep 19, 2005
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it is just a savings account It is set up at the bank where my GF's father works In Santiago.. I am not sure of his position at the bank. The question is basically for future considerations......at this point she has just deposited the funds herself. But i may just look into direct deposit and was forward thinking..... I guess i can consider other types of account as well.....bob
 

Mirador

On Permanent Vacation!
Apr 15, 2004
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laurapasinifan said:
In the tourist areas does the price of things just go up as the rates gets worse for the locals? Ie do they realize that the dollar is getting the tourist more money and then just raise the price. I remember 3 years ago when i was there the rates was about $18 pesos per american dollar. I noticed that something that cost about $100 american( $1800 pesos) then now costs the same $100 american($3200 pesos) now!... the price rose with the exchange...is that very common?...if it is the benefit of the high dollar is diluted.......bob

I've heard economists mumble something about the elasticity of supply and demand, how a change in an economic variable influences another that depends on the first. In this case, it is how the price of foreign exchange influences the level of consumer prices. Some economists even suggest that there's a point of equilibrium, where the increase in the price of foreign exchange is offset by a corresponding increase in consumer prices. They say it's USD1/DR37.50. Personally, I believe all this is hogwash.
 

ricktoronto

Grande Pollo en Boca Chica
Jan 9, 2002
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laurapasinifan said:
I remember 3 years ago when i was there the rates was about $18 pesos per american dollar. I noticed that something that cost about $100 american( $1800 pesos) then now costs the same $100 american($3200 pesos) now!... the price rose with the exchange...is that very common?...if it is the benefit of the high dollar is diluted.......

What is odd is when the peso regained value from 50+ to 1 back to under 30 to 1 the prices still went up. Losing value it makes sense that prices in pesos rise to keep the equivalent US$ price, the other way didn't happen.
 

Tamborista

hasta la tambora
Apr 4, 2005
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Cole Slaw:

Why respond then?
You seem like a nice guy, but you are really starting to get annoying responding to every post. Why not wait until you have something of value to add or ask?
 

Ken

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Jan 1, 2002
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laurapasinifan said:
it is just a savings account It is set up at the bank where my GF's father works In Santiago.. I am not sure of his position at the bank. The question is basically for future considerations......at this point she has just deposited the funds herself. But i may just look into direct deposit and was forward thinking..... I guess i can consider other types of account as well.....bob

Savings accounts are available in most banks in dollars and in pesos. You must specify what you want when you open the account.

Is there some reason you want her to have dollars? If not, you can open an account for this purpose in your own bank and give her an ATM card that will let her withdraw funds. She will get pesos from the ATM machine, but your money will stay as dollars until it is withdrawn by her. This is cheaper than transferring funds to an account in the DR.
 
Sep 19, 2005
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quickly my only thought was this: It seems like the dollar value keeps going up. I would like to have funds there for her needs what ever they may be or when....but if she dont need any money for a month....then when she did need them they are readily available and she got the benefit of the higher rate. Its not a real priority now, because she only needs funds for school , transportation , and new clothes now and then( most women its now now now). But i really dont like the idea of her riding on the back of a motorcycle in that country on the first half of her trip to school. She takes a motorcycle taxi to the bus stop... 2 main reason, they are unsafe as hell.. and I really dont like the thought of her hanging onto some guy every day !! ha ha ha.. I dont want to hear one day she ran off with the motor cycle taxi guy.. and I pushed her right into his arms !! ha ha. So I may buy her a car. and that would be enough funds to watch how i do it. I would rely on her father to pick a decent car. I dont want to be shopping for cars when i go down...bob