Historical Exchange Rates per U.S. Government

[SantiagoDR]

Using the U.S. government official web site for foreign exchange rates I created the following Excel spreadsheet (JPG IMages) for the Dominican Republic exchange rates of the past 20 years.

Hopefully I got all the math correct.... lol

 

[chico bill]

Seems the rising rate is not our friend.

If the supermercado has to pay 10% more (in dollars) they add their profit to that, lets just say it is 10% profit.

So if something cost them $1.00 US last week, they would sell it at $1.10 US in their store (of course converted to pesos)
If it costs them $1.10 next week they will sell it for $1.21 US - so it's a profit game and you pay more, even though you thought you had more pesos in your pocket this week than last, you will not be able to buy more goods.

And I have noticed retailers are not shy about raising prices.

I remember the peso around 30:1 in year 2000 and things were way cheaper in relative US dollars back then - so go figure

 

[etolw]

Seems the rising rate is not our friend.

If the supermercado has to pay 10% more (in dollars) they add their profit to that, lets just say it is 10% profit.

So if something cost them $1.00 US last week, they would sell it at $1.10 US in their store (of course converted to pesos)
If it costs them $1.10 next week they will sell it for $1.21 US - so it's a profit game and you pay more, even though you thought you had more pesos in your pocket this week than last, you will not be able to buy more goods.

And I have noticed retailers are not shy about raising prices.

I remember the peso around 30:1 in year 2000 and things were way cheaper in relative US dollars back then - so go figure

Do not believe you are correct, but this thread is not for discussion. Fortunately this were recently discussed here

 

[Astucia]

Using the U.S. government official web site for foreign exchange rates I created the following Excel spreadsheet (JPG IMages) for the Dominican Republic exchange rates of the past 20 years.

Hopefully I got all the math correct.... lol

When I first came here in 1989 the rate was 8.

A year or so later the rate was 12. That was a huge ( 50 % increase )

 

[AlterEgo]

When I first came here in 1989 the rate was 8.

A year or so later the rate was 12. That was a huge ( 50 % increase )

When I first came in 1975, it was 1:1. No need to exchange dollars. In the “street”, you could get 1:1.18, and boy we thought we were making a killing.

 

[SantiagueroRD]

When I first came here in 1974 it was one for one then when I came back in 1985-86 it was three for one.

 

[Giovannisoto]

What caused that huge drop in the USD in September 2004?

 

[playacaribe2]

What caused that huge drop in the USD in September 2004?

A huge rise in the value of the peso.............when the IMF agreed to, and bailed out the DR with a massive loan after the Baninter banking crisis that began in 2003. The peso with that bailout was no longer in danger of ending up like the Bolivar in Venezuela (hyper inflation) and subsequently came back from approximately 55:1 to 28:1 to the Dollar..


Respectfully,
Playacaribe2

 

[Caonabo]

What caused that huge drop in the USD in September 2004?

Hipólito Mejia.

 

[playacaribe2]

Hipólito Mejia.

Touché’

Respectfully,
Playacaribe2

 

[irsav]

A huge rise in the value of the peso.............when the IMF agreed to, and bailed out the DR with a massive loan after the Baninter banking crisis that began in 2003. The peso with that bailout was no longer in danger of ending up like the Bolivar in Venezuela (hyper inflation) and subsequently came back from approximately 55:1 to 28:1 to the Dollar..


Respectfully,
Playacaribe2

55:1 was much better for expats than 28:1 ! MUCH better!

 

[Giovannisoto]

I guess in 2004 , Hipólito Mejía being one of the factors and the IMF the other. But isn’t the same at play now- didn’t DR just get a loan from the IMF and the pres. election is in July.. Will this cause the value of USD to drop.?

 

[Celt202]

Hipólito Mejia.

The Hipólimoto.

 

[rubio_higuey]

I guess in 2004 , Hipólito Mejía being one of the factors and the IMF the other. But isn’t the same at play now- didn’t DR just get a loan from the IMF and the pres. election is in July.. Will this cause the value of USD to drop.?

Not likely. It will be 57 the coming week.

 

[DR Solar]

I distinctly remember the peso hitting 55 some years ago and we bought lots of pesos. The rate dropped to 35. The DR Gov. was offering notes at a very high interest rate but people had problems just getting the interests of the banks and it was feared that it would collapse.

Waiting for 57 for a "modest" buy and looking at 60 for a larger buy. Being cautious on this one.

 

[rubio_higuey]

I distinctly remember the peso hitting 55 some years ago and we bought lots of pesos. The rate dropped to 35. The DR Gov. was offering notes at a very high interest rate but people had problems just getting the interests of the banks and it was feared that it would collapse.

Waiting for 57 for a "modest" buy and looking at 60 for a larger buy. Being cautious on this one.

It will not go down. Not soon. Remittances are down 30%, tourism money is down 100%, zona franca exports are also down. Dollars entering DR economy are way down to be able to satisfy the needs for dollars for imports and foreign payments.

 

[rubio_higuey]

I distinctly remember the peso hitting 55 some years ago and we bought lots of pesos. The rate dropped to 35.

It was not overnight. The rate jumped to 55 (for 2 days) on january 23/27, 2004, then it hovered around 44-52 for 6 months (up and down), then mid July 2004 it started downward trend, finally reaching 28 in mid November 2004, and stayed at 28-29 through mid-August 2005. So it was not an overnight process and enough time to make currency swap one way or the other.

Source: https://www.bancentral.gov.do/a/d/2538-mercado-cambiario

 

[Giovannisoto]

@rubio_higuey Thanks for that info with source

 

[Giovannisoto]

@rubio_higuey and @DR Solar do you guys buy pesos.? I Like @rubio_higuey thinking. I am thinking of buying pesos some also around 57 and more a little higher. I wish to buy some RE in DR and if the dollar drops big I would like to have the pesos ready. If the dollar doesn’t drop then my loss will be the difference in the purchase and resale. BUT, if the USD drops my gain can be large and worth the small loss risk. In beginning 2004 my family took advantage of this big USD rise before the drop.
..If there is a drop now how long will it last?
... What do the DR economists thinking will happen?
Why don’t you @DR Solar think it will drop?
Thanks

 

[playacaribe2]

@rubio_higuey and @DR Solar do you guys buy pesos.? I Like @rubio_higuey thinking. I am thinking of buying pesos some also around 57 and more a little higher. I wish to buy some RE in DR and if the dollar drops big I would like to have the pesos ready. If the dollar doesn’t drop then my loss will be the difference in the purchase and resale. BUT, if the USD drops my gain can be large and worth the small loss risk. In beginning 2004 my family took advantage of this big USD rise before the drop.
..If there is a drop now how long will it last?
... What do the DR economists thinking will happen?
Why don’t you @DR Solar think it will drop?
Thanks

If your intent is to send your money to die..............that strategy will work.

Good luck.

Respectfully,
Playacaribe2