[curcercanty]

Originally posted by arturo
I see the two top factors as: 1. $USD supply and 2. foreign investor confidence.

Once the novelty of the IMF accord wears off, can anyone see any indication of something that would encourage foreign investment? I'm a pessimist , Since PPH is still around and trying to keep "el carguito" for mr Hippo ,my confidence is loww, veeryyy low.....

[espenijij]

Is the Peso going to go up or down? Any Insight?

Yes. It is going to go up and down.

Actually upon reflection so is the US, CDN$, Stg. Euro. And the yen, too.

In fact often DURING the day.

[Info-phone]

I to am trying to make a substantial purchase and have been waiting for right time. I am interested in buying an SUV but have not been able to find many on the road these days and I will not buy from a dealership at their high profit prices.

I did not see that coming...people not willing to sell their vehicles because of high price of buying a new one.

We have been patiently waiting for the right time...but now I am thinking that if that time does not come soon...we will just buy an inexpensive car and drive that until I find a decent vehicle here at a respectable price. Is that possible? hehe.

I say short term the dollar continues to get cheaper....next year it goes higher.

Best of luck to all.

[kranskregyan]

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[rockboyzaza]

I see the two top factors as: 1. $USD supply and 2. foreign investor confidence.

The two factors are clearly related. Of course, the $USD supply is influenced by demand but that demand has historically been strong with periodic spikes. Foreign investor confidence is the less stable factor, but it is no less significant. Once the novelty of the IMF accord wears off, can anyone see any indication of something that would encourage foreign investment?

[tpJKhY8Z]

Originally posted by andy a
If you must convert currency, maybe you should do it one third at a time to hedge against getting a disastrous rate.

There are no guarantees - just my thoughts. Andy, very wise advice to give. Reminds me of averaging in to the stock market

Regards,
Escott

[imictiorume]

I held off on my purchase and waited for 35 to 1..that happend on Friday.............Thanks for the Insight

[curcercanty]

I've been hearing the kind of maxim's commentaries since last year...

The goverment is having the same chit-chat, that everything is going to be all right.

1- They drained bank central's vaults selling dollars trying to stop the collasing of peso....and we simply get no dollars reserves and the peso collapsed.....

2- Tourism is having a peak this year and still the dollar is going up....

3- FTZ zones have been exporting a lot and have been "rewarded" with the infamous 5% tax (Are going to keep FTZ exporting after that?), and still the peso goes down....

4- The Banco Central has already "drained " RD$20,000,000,000.00 from the public and peso is still going down....

5- The president decreed a 2% tax on all imports and peso is still going down....

6- They created a .75% tax on checks processed by la Camara de Compensacion and peso is still down....

7- They have raised the active interest rate to historics higts and peso is still going down......

8- Dominicans have deposited US$1,300 millions dollars in foreign banks during 2002 in spite of the raising of interest rates....

So what else the IMF is going to do, magic?.......





:

[WeissVine]

Any government can, at their election, force a desirable, artificial, Official exchange rate within their own borders . They can't control the International rate of exchange, however. If I remember correctly, Baleguer tried doing this during his regime and was moderately successful for a short period of time, but the forces of economics/finance did get him into trouble in the long run. Hipolito may take a page from that incident and try the same thing. Again, he may, or may not be successful.
I'm sure the IMF, the World Bank, and others will be watching closely the election mileu from now until that event is fulfilled.
The more dollars in circulation, the more advantagous the exchange rate for the Peso.

Texas Bill

[JakilSong]

What time of day was that, Peter & Alex? As indicated in above post, I got 31 from Vimenca when I changed money at noon today (Sept 1). Other Sosua change banks were showing 30 at the time.

[rouletteroulette]

Perhaps the absolute best way of all to predict the market is to "fade" (go against) the consensus of the "experts".

Years ago, before the proliferation of so much "information" in the media, there was a famous, and very accurate, guru who based his own predictions upon this.

Unfortunately, his method became general knowledge. Now, when questioned at all, the "experts" lie so routinely that the method has dubious value.

[rockboyzaza]

Hmmmmm...

[imictiorume]

I'am considering a major purchase and need to know if I should buy now or wait for the Peso to go back up to 35-1US...I will be chaneging US Dollars.

[JakilSong]

I got 31 at noon today at Vimenca. The other exchange banks in Sosua were posting 30.

[welihiedginly]

Although within the next few days (as the government makes the people believe) the stand-by agreement with the IMF will be signed and thereafter fresh USD will enter as long as confidence of the investors in the DR economy is not reestablished there will always be a great demand for the US currency and USDs will continue to leave the country. Result: For the time being the Peso will not significantly go up. It needs some time to regain confidence in the DR economy if ever !

[welihiedginly]

Practically all well known economists predicted upon signing of the IMF agreement a gradual decrease of the USD exchange rate.
Let us wait and see if these forecasts are real !

[drgshmcm]

be a billionaire...

The government has taken RD$30 billion out of circulation (or is trying to) and that takes money off the streets for buying dollars. The government is also increasing taxes and creating a recession, which also lowers pressure in dollars.

I think it will go a little lower..but I don't change that much money.

HB

[imictiorume]

I got 30 in Pto.Pta today...........Sept. 01.

[pesty4077]

I am more interested in how the inflation rate in the DR is going to react to the peso if it continues to drop. I have absolutely nothing in pesos and all my money is USD. The peso can go to 50 to 1 but if prices inflate proportionately It wont make any difference to me.
Larry

[sbgctsa]

Now is a good time to invert. With the tourist high season soon upon us, Banco Central continuing to squeeze the money supply and the IMF funds coming, these factors are sure to add value to the peso.