- Thread starter j&t's future
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Peso devaluing vs. Dollar - Central Bank to Intravene?
Dominican Peso | Actual Value | Historical Data | Forecast | Calendar
You can change the year back to 2004 and see the ride the peso has been on. Here we go....
You can change the year back to 2004 and see the ride the peso has been on. Here we go....
Other than being long USD on the way up, how does one profit?
I do not forsee a run to 60 and quick drop to 40 like The Hippo Fx manipulation.
I'm not sure of your question Tambo since you know all this. It's like any investing. I'm looking at buying if/when the DP hits around 61. Prices/costs for everything will go way up. The people will panic and will let everyone know that they are not happy. The gov. will, one way or another, get the peso down again.
Unfortunately; the cost of living that went up will not drop much if at all in most situations.
Exp: US $1,000. @ 61 PD = $61,000. DP. If then peso drops back to around todays rate of 42.- then that US $1,000. would only buy 42,000 pesos. In pesos I now have made 19,000 pesos profit or, almost U.S. $450.
My math OK guys?
The difference is back then the interest the CB paid on dollar deposits was outrageous! I know several who lived large off that interest...until it came time to renew...Somewhere Pap? is smiling
Math is good, but that assumes a stable dollar.
At this point it's gambling. That said, I would have only the bare minimum in pesos...
All good unless inflation matches or is greater than your increase then you get less for your 61,000 than you did for your 42,000.
The bigger question is: will the DR be a place worth living in if the s#!t hits the fan that bad? The Hippo thing was because of a bank. This time it's far more systemic.
Very good point cb. The Central Bank was paying ???? 35% was it? As I remember, those people that had CD's and no problem getting their interest. Trying to get the original deposit was very difficult.
I have NO idea what the interest rate is on a C.D at the Central Bank anymore. IF I did have any, I'd be cashing them out.
If the peso would continue to rise.... the majority of the populace would be in Santo Domingo is less then 24 hours.
We all know what happens then. And those in power know it too.
My brother in law profited insanely at that time, due to the volatility of the dollar against the peso and the euro against the peso. He was on top of it all the time and changed dollars for pesos, pesos for euros and euros for dollars, or whatever he did and bought a piece of land with the profit and build a small mall on it. He was lucky to be a good friend of the daughter of the owner of a big company that needed dollars all the time and would buy big quantities from him, while there often were no dollars in the official system.
Over the years, except during the "Hipolito" fiasco, I always cashed my dollar checks all into pesos.
For the past year, I have asked for 500 in US Dollars, the rest in pesos.
So-Far-So-GREAT!
When the "MIERDA HITS THE ABANICO" having US dollars in your "pocket",will be a real blessing.
The banks won't have them, or won't sell them.
The ATM will not be working.
$100 dollars on the "Street" may be worth 100 to 1!!!!
I love "CAOS"!
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For the past year, I have asked for 500 in US Dollars, the rest in pesos.
So-Far-So-GREAT!
When the "MIERDA HITS THE ABANICO" having US dollars in your "pocket",will be a real blessing.
The banks won't have them, or won't sell them.
The ATM will not be working.
$100 dollars on the "Street" may be worth 100 to 1!!!!
I love "CAOS"!
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
When I left May 1 for a while... they could only give me $3k in US$$..... you're right about the lack of hard currency....
I even used your name -- still----------- no cheese!!!