exchange rate

jimbobo

Member
Feb 9, 2014
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So, the pesos has had a fixed rate to the dollar for 3months now... can they just fix an exchange rate like that? without consequences?

Why was the rate fixed, and when will it end?
 

cavok

Silver
Jun 16, 2014
4,687
565
113
There have been a lot of times in the past where the exchange rate has stayed more or less the same for a couple months. In fact, for the last month or so, the exchange rate has been dropping. It reached a high of 58.35 and yesterday I got 58.00 at Banco Santa Cruz in Cabarete. I saw other cambios only offering 57.80.
 

GringoRubio

Bronze
Oct 15, 2015
1,159
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DR has a floating rate although the government does their best to keep is reasonably consistent so not to shock the economy. Just google "dr pesos to usd" and they will give you a nice graph. 58.45 pesos to 1 $ by that source. Click on 5Y to see this graph:
1601046269700.png


That big drop was a killer for poor Dominicans importing everything was more expensive and the price of chicken was changing almost daily. However, with the flow of tourists, there were definite shocks to the economy. Historically, the rate has been about 7% which is why things like real estate is often sold in dollars.

Other counties will peg the rate to a hard currency like the dollar and their are French/Dutch caribbean islands that run on Euros. Panama is 1:1 with the dollar, and which makes it easy to spend your americanos where you want.
 
Jan 9, 2004
9,135
487
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So, the pesos has had a fixed rate to the dollar for 3months now... can they just fix an exchange rate like that? without consequences?

Why was the rate fixed, and when will it end?

The Banco Central "fixes" the buy/sell dollar rate weekly. It is fixed in that the government uses that exchange rate for its weekly banking/economic purposes.

That may not be the rate at the various banks/exchange houses across the country. To see what I mean, please click on the link:

www.infodolar.com.do

As you can see, rates can/do change from bank to exchange house, often multiple times per day.

So to make this as clear as mud....................the peso has a weekly "fixed" rate per the government, but one that also also floats.......usually within narrow parameters.


Respectfully,
Playacaribe2
 

cavok

Silver
Jun 16, 2014
4,687
565
113
The official rate at Banco Central today is 58.35 and has been steady for about the last two months. The rate on the street is dropping for some reason. Maybe lower demand for the USD(?).
 

cavok

Silver
Jun 16, 2014
4,687
565
113
The Banco Central "fixes" the buy/sell dollar rate weekly. It is fixed in that the government uses that exchange rate for its weekly bankin

Respectfully,
Playacaribe2
Banco Central publishes a rate daily. It usually doesn't vary by more than .05 or .10, but occasionally does.
 
Jan 9, 2004
9,135
487
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Banco Central publishes a rate daily. It usually doesn't vary by more than .05 or .10, but occasionally does.
Yes, they do. But it keys off of the rate set at their weekly meetings;


Click on Exchange Market and then American Dollar (Today).....then click the link that comes up.
 

cavok

Silver
Jun 16, 2014
4,687
565
113
Yes, they do. But it keys off of the rate set at their weekly meetings;


Click on Exchange Market and then American Dollar (Today).....then click the link that comes up.
It shows 58.35, effective until tomorrow. That's the rate I posted(?).
 
Jan 9, 2004
9,135
487
83
It shows 58.35, effective until tomorrow. That's the rate I posted(?).
Exactly. Tomorrow they will meet and set the buy/sell rate again via the communique on the website. That rate will then be posted in their daily updates for the week........until the next weekly meeting or until an emergency meeting becomes necessary.

To further clarify, they also can "adjust" that rate daily by narrowing the buy/sell spread.

Respectfully,
Playacaribe2
 
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