Devaluation of Peso

[anisetto]

I have some money in pesos on a CD on a revolving month to month basis at 22% interest. I am afraid the dollar is increasing and it is now at 40.00 pesos per dolar. Should I take my pesos now and change them into dollars or wait? Do you think the pesos would continue to devaluate? Help!

[ricktoronto]

Originally posted by anisetto
I have some money in pesos on a CD on a revolving month to month basis at 22% interest. I am afraid the dollar is increasing and it is now at 40.00 pesos per dolar. Should I take my pesos now and change them into dollars or wait? Do you think the pesos would continue to devaluate? Help!

The peso has devalued 17% since I left on the 19th (15 days) when it was 34 to 1 and is now 40:1. You are getting less than 2% a month, which covers the depreciation for about 2 days.

Dollars might be prudent since you may not be able to buy them soon. Remember 40:1 is the selling rate for pesos ( you sell $, buy RD$), to find someone to sell $ for your pesos they may want 42,44, who knows? If at all.

[calamardoazul]

Well, is risky but since you have waited too long to decide, should be better to wait the outcome of the IMF agreement....just an advise......., no guarantees!

[Escott]

The IMF agreements is a non issue. They have drawn down most of the money already and there is only 93 million left even if the DR gets with the program. So there may be a little relief for a short period of time but the way this country is going it isn't going to be enough to help. 44% of all moneys taken in go to the Government payroll. How can a country get along on that?

[DCfred]

I said this months ago and will say it again. My friend, an economist at the world bank here in dc, says that she thinks the peso will eventually stabilize at 100 to 1. When I said this before I was told I was crazy but look, almost half way there....and election spending has not even started!

[calamardoazul]

But at the time of the agreement is possible that the peso revaluates for a little time, that's all. As I said It`s a guess.

P.S. There are others funds to be release once IFM agreement takes place...

[Escott]

There are NO OTHER FUNDS other than the 93k available after the DR comes into required economic changes according the the IMF website.

[calamardoazul]

You have it in your inbox.

Edited just to save the date

[Handel]

So what would you guys advise someone to do who will be coming to the DR with U.S currency. Obviously putting it on the bank might not be such a good idea, nor burying it in the back yard.
Should I leave my cash back home and transfer it whenever i need it? Won't the charges be high?

[gerd]

I think burying it in the backyard is a great idea!

Where did you say you're staying?