Planned peso rate 20 : 1

gringo in dr

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May 29, 2003
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I was told today that they are going to try to get the peso rate down to 20 to 1 and hold it there until just after Christmas.

At the same time none of the prices are coming down. In fact most of them are going up. Then we have the increased taxes across the board.

Leonel the savor? Looks like he is more corrupt than little hippo. I'm wondering how he is going to pay these loans back as all the foreign money moves out.

This really f*cks up my budget.
 

Pib

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gringo in dr said:
I was told today that they are going to try to get the peso rate down to 20 to 1 and hold it there until just after Christmas.

At the same time none of the prices are coming down. In fact most of them are going up. Then we have the increased taxes across the board.

Leonel the savor? Looks like he is more corrupt than little hippo. I'm wondering how he is going to pay these loans back as all the foreign money moves out.

This really f*cks up my budget.
A quick perusal of six months worth of grocery bills (I am saving them, out of curiosity) tells me that prices peaked mid-July and have either remained the same or came down in almost all cases. Two of these exceptions (that are more expensive now than in July) are diet coke and gatorade, which maybe we should quit anyways. Fresh produce and local brands are cheaper in general.
 

gringo in dr

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Pib said:
A quick perusal of six months worth of grocery bills (I am saving them, out of curiosity) tells me that prices peaked mid-July and have either remained the same or came down in almost all cases. Two of these exceptions (that are more expensive now than in July) are diet coke and gatorade, which maybe we should quit anyways. Fresh produce and local brands are cheaper in general.

I buy both local and imported items. I have noticed the local chicken prices have not come down from the high yet. Imported items such as cream cheese and cottage cheese have constantly gone up.

We also have to remember the new taxes haven't kicked in yet.

Someone else posted that one of the resterants told her their prices are going to be raised by 25% tomorrow.

Anyone calculated the price of gas at the new rate of 28? Getting close to $4 a gallon for la buena.

My light bill at 28 comes out to $350. Somehow those 6 - 8 hours of power don't seem to justify that.
 

Jerry K

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Peso up, prices up too

I have a restaurant in Puerto Plata and can tell you in the past month the price of chicken has remained the same. Of course the price of propane gas has doubled with the loss of subsidies, it was a nice ride while it lasted.
The IBIS tax goes up 4% that's reflected in beer, refrescos etc. I can see bumping up prices by 5% but you can also price yourself out of the market.
My business is 95% local and for the business core the spendable income can't get much tighter.
 

Pib

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gringo in dr said:
I buy both local and imported items. I have noticed the local chicken prices have not come down from the high yet. Imported items such as cream cheese and cottage cheese have constantly gone up.
You are right about chicken. 1 lb of boned chicken breast was $54.95 on Jul 4 and $124.95 Sept 26 :eek:. Eggs on the other hand are cheaper, so are plantains, and other products. In general whatever has come down has not done so on the same level as the dolar. And some things are inexplicably way more expensive than in July. Still, in general our grocery bill is a bit cheaper.
 
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BushBaby

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As we all tend to like & eat different things, it is not surprising that there are discrepancies in the weekly shopping basket. Those who concentrate on LOCAL goods may find their weekly shop a little cheaper, those that concentrate on IMPORTED goods will certainly be paying higher weekly bills now - the lower exchange rate hasn't hit the shops yet (will it EVER??). Perhaps one of the main reasons for not having a reduction in food bills is (as Gringo in DR suggested) the very increased petrol prices. This is making transportation much more expensive for the suppliers!!

Perhaps we could change direction slightly here & try to determine WHY the exchange rate is coming down. Is it Government controlled again?? I thought the IMF insisted on a free float exchange rate before they would consider continuing talks on making the US $1 billion standby arrangement? Have they now turned a blind eye to this condition?

Is it being 'Tweaked' so as to buy loads of U$D so that the electricity companies & distributors can be paid off their debts?? What OTHER U$D debts are likely to be paid out of this bonanza of low cost U$D for the next 3 or 4 weeks?? What is going to happen to the RD Peso once these debts have been paid off by the Government & the U$D starts to find it's TRUE level again?? What is the betting it will surge to RD $36 + to US $1.00 (at least), most likely RD $40.00 : 1!! I bet the shopping price for the weekly shop will then go bouncing back up to where it was 4 to 5 weeks ago!!!

It cetainly would be great to get some reliable/believable information from this Government as to where it is going, WHY the exchange rate is being manipulated & WHERE the U$D being bought are going!! ~ Grahame.
 

Lechero

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Aug 11, 2004
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Manipulation

In this country, never!
Whoever is controlling this is Bigger than Baldie and has bigger traders this time.
What do you think it costs to join the RDBBC?
Can you marry into it?
What are the monthly dues?
I want in.
 

Conchman

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Jul 3, 2002
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It cannot be a real 'market' rate since you cannot buy dollars at the current rate, or so at least I've been told.

I have a CD in pesos maturing Monday and I'm thinking about buying dollars with it, I will find out later today if there are any buyers at 25-27 which is the rate some of the exchange houses are apparently offering.
 

Jerry K

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Jan 1, 2002
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Gas prices

For those thinking in the terms of dollars, it's comforting to know the price of regular gas is now around $3.50 a gallon pending todays' weekly adjustment.
 

gringo in dr

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May 29, 2003
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There is definately something going on.

While little hippo was a thief, Leonel is smart educated thief. I'm missing little bobo right now.

Leonel is definately cashing in. He is litteraly stealing 50 cent on the dollar from anyone that has to sell dollars right now. He is laughing all the way to the bank.

I seriously doubt they will sell dollars at this rate in any large amounts.

The person I talked to said they are working their way down to 20 and they are going to try and hold that until after Christmas. Remember all the money that is sent down here from the Dominicans in the states for the holidays. Why not steal 50 - 60 cents on each dollar?
 
T

TiberiusMineola

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BushBaby for Secretary of the Treasury!!

I'm hereby nominating BushBaby for the position of Secretary of the Treasury, La Republica Dominicana, eff. 15oct04. I assume that his wife will assent. He seems to understand well how the system is being manipulated. I've notified Leonel of this desired & positive change via email; he's agreed!! Leonel told me in strict confidence that BushBaby couldn't be more incompetent than who ever has the job now. BushBaby will be able to steal millions! The UK needs the $. The official currency will be changed to the Pound Sterling. Land Rover will be the official SUV of La Republica. That will be the end of Peso manipulation. Viva BushBaby!!
Point of order: what is "RDBBC"? Thank you.
 

ERICKXSON

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Dec 24, 2002
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Food Prices Are Down

HEY! guys whats going on so far food prices are way down on my part of town local chicken, rice and specially vegetables.

i dont know but prices vary from place to place.
 

gringo in dr

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May 29, 2003
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What happens to the people that bought apartments/houses?

If someone bought a 4,000,000 peso apartment at 50 equals 80,000 USD. Let's say they paid 1,000,000 down. So they should owe 3,000,000 or $60,000 USD. At a rate of 28 they now owe $107,000. Not to mention the 30% interest they are being charged per year.

Same thing happens to people that have loans on cars.

Also what about the prices on cars period. Call Ochoa and ask them the price of a new Honda CR-V. 1,450,000 pesos. At a rate of 50 that was just a tick under $30,000. At 28 you are looking at a price of nearly $52,000. Ochoa is staying with the peso rate and I bet you others are too.

Corruption taken to a new level.
 

jrzyguy

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May 5, 2004
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EEKS!!!

I was really thinking of coming down next weekend for 5 days....but with the exchange rate as it is i think i will just stay here.

Has the govt thought about what this move will do to the tourist industry??? Many people have chosen the DR as a vacation spot MAINLY because how far the dollar goes there.

Can someone please educate me as to what the hell is going on?????

jj
 

AnnaC

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Jan 2, 2002
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jrzyguy said:
EEKS!!!

I was really thinking of coming down next weekend for 5 days....but with the exchange rate as it is i think i will just stay here.

Has the govt thought about what this move will do to the tourist industry??? Many people have chosen the DR as a vacation spot MAINLY because how far the dollar goes there.

Can someone please educate me as to what the hell is going on?????

jj

Yeah! Let's not worry how Dominicans have been able to buy food the last couple of years. It's all about greedy tourist not getting 50 to 1 to have fun. Yeah that's it.
 

Chirimoya

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Dec 9, 2002
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I may be wrong on this one but I don't remember people making the point about remittances being worth more when the peso was at its all-time low. If a significant percentage of Dominicans are in receipt of remittances, the increased value of the dollar vs the peso must have done something to offset the damage being done by the decline in value of peso salaries and the rising prices. Think about it: if you were receiving US$100 in 2000 it would have been worth RD$1,700. Last year it got you up to over RD$5,000.