Trujillo doesn't get enough credit for that. He paid off all the national debt.
- Thread starter pinonuevo
- Start date
The Dominican Peso will be 1:1 with the US Dollar Again?
Which is exactly why an orderly peso decline is in the cards.................tourism.......and exports.
The DR has seemingly tied its boat to tourism and exports.............both of which benefit from a cheaper peso...............thus the future for the peso is likely a continued orderly decline...................unless of course they abandon tourism and exports.
Respectfully,
Playacaribe2
Poor wording on my part. What I meant by "drop" is to go down to, say, 25 to the USD.
When the peso falls they just jack prices so they get equal dollar value. Then if the dollar goes back up they don't reverse the peso prices - we loose
If the peso went to 25:1, both tourism and exports would slow fairly quickly. That is a 50% increase in the pesos value against the dollar .....or put another way, a 50% decrease in the purchasing power of any tourists. Tourist meccas like Mexico would salivate if that were to happen.
Respectfully,
Playacaribe2
Suppose a dinner at a restaurant here now costs $20 USD. If the peso strengthens to 27/USD, that dinner will now cost $40USD. At about 14/USD, the dinner will cost $80USD. At 7/USD, it will cost $160USD. At 3.5/USD, it will cost $320USD. At 1.75/USD, it will cost $640USD. At 1/USD, it will cost about $1100USD. And that's assuming the price in pesos stays constant. This will never happen in 10 to 15 years.
Exactly.
1:1 with the current peso is not likely.
100:1 is more likely.
As has been pointed out above, that will hurt the average Dominican who is paid/buys in pesos........but it will help to continue to stimulate tourism/exports...........the staples of the current Dominican economy.
I am curious as to how long the government can continue to increase wages, subsidize the food basket, and how long they can continue to absorb the costs of gasoline.................before the adverse effects on the peso begin. So far they have managed...............but they cannot do this forever.
Respectfully,
Playacaribe2
If the dollar takes a big enough hit it most certainly could. Venezuelans were saying the exact same thing 25 years ago.
You really can't compare the US to places like Venezuela or Zimbabwe. If an average dinner costs $1100USD any time soon, there will be a lot more to worry about than the peso exchange rate and nobody will be coming to the DR except billionaires on their private jets.
Now there is another unrealistic get rich quick idea.
Better idea..............and more realistic...........bring in 120 pesos and get a Dominican Dollar...........that would probably last for at least 6 months or so.
Respectfully,
Playacaribe2
Let's not confuse the shops - they have a hard time making change now
man your a mathematicianIf the rate changes to 100:1 , the peso becomes a penny.
Gets even more complicated though when you have to explain that 100 centavos equals one peso. Lots of zeroes..........they may need to import those mathematicians from Venezuela...............they have lots of experience with zeroes..............
Not to worry though, chicklets will be making a comeback to help round out/finalize the transaction.
Respectfully,
Playacaribe2
Another childish cheap shot and expect a vacation from the site.
I hear ya. Even in the U.S if you ask 10 people on the street how many millions are in a billion only 4 will get it correct