Maybe Hippos exchange rate games aren't so dumb?

[tht]

Who cares whether one is going up or the other one is going down. The market is moving because of flow. Is a financial instrument bid or offered? Nothing else is moving the market, except if the cashier in a bank has a gun pointed at his head, that can possibly bring the pesos rate to 35 or whatever. The EURO/USD rate is now moving because big players in the market are hedging their USD exposure, flow out of USD and in to EURO. The primary beneficiary of USD selling is EURO, it's not Yen or GBP. My EURO target is 1.24, will probably raise the tgt. to 1.30 next year. I'm trading pesos only when I go to the ATM. Have a wonderful afternoon.

 

[Porfio_Rubirosa]

Excellent analysis, Dutchie. How did you think up such a thing? http://www.dr1.com/forums/showthread.php?s=&threadid=27695

Result of Hippo's Actions:

1. You will all begin changing dollars in seedy backrooms or on the street. The maffia controls.

2. The backroom money changers will have to pay the generals to not look. The maffia controls.

3. The generals will then pay Hippo to keep their jobs and will support his reelection campaign to keep the scam going. The maffia controls.

4. The whole scheme falls apart after a few weeks or months and the Peso flies like a sling shot to 50:1 ++.

5. Hippo announces his invasion of the Falkland Islands (by yola).

 

[MerengueDutchie]

It seems I am not the only one to think things through

Just thinking along the same lines I guess :classic:, although maybe my analysis was a bit broader and included more extensive reasoning.

http://dr1.com/forums/showthread.php?s=&threadid=27696&perpage=15&pagenumber=2

http://dr1.com/forums/showthread.php?s=&threadid=26974&perpage=15&pagenumber=3


It will be interesting to see what the timing for the lifting of fixed currency rates will be. Probably have to take a look at the payments due on foreign (dollar) debt. It's that or just forfeit the foreign debt.

Seen any IMF guys in the DR lately?

Any thoughts?

MD

 

[Bobs]

Dutch Merengue ?

Ehhh..., bedankt for the analysis there, Dutchie ! I do think El Hippo will be sharing with his cronies. Got enough greenbacks now. Think I'll use my bankcard at the ATM for the rest, 'cause I still get better return on the Euro and there is a minimalistic charge. Groetjes...

 

[Norma Culligan]

USD Versus Euros

Quick question, coming into the country to live, first for 3 months Jun - Aug, as our money is Euros, we would have bought USD. From your comments, would it be better to bring in Euros.
And how is the value of the USD and Euro to the Peso now!

 

[MerengueDutchie]

Norma you have two solutions

1) To buy dollars outside the DR and come into the DR carrying dollars. Remember the maximum amount of US$ 10,000 per family coming in! Exchange them at the black market for pesos to get the real exchange rate rather than Hippo's rate. This is more risky and should be attempted only if you know people 'in country'and feel comfortable in doing so.

2) To use your ATM and get money from your European bank when you need it. This way is safer but you will lose money on the official exchange rate.

Both the US and Eur exchange rate are posted on the front page of listindiario at their website at www.listindiario.com.

MD

 

[Norma Culligan]

Dollars

Many thanks for that information. I will keep an eye on rate. And yes, we have a lot of family in Puerto Plata and Samena. But as we work in Gibraltar our salaries at present are actually in Sterling. Rate seems better than Euro and USD, so we will have to make more enquiries.

 

[MerengueDutchie]

A little clarification

Norma,

The exchange rates in the post are the official exchange rates!

The black market rates are a bit higher. So exchange sterling to dollars outside the DR prior to going and change via black market channels once inside. You will be able to make a little profit this way.

Good luck!

MD

 

[Norma Culligan]

Many thanks M.D. I will owe you a Guinness on the profits!
Norma