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Thread: The Exchange Rate NEWS

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    The Exchange Rate NEWS

    Deserved it's own thread imho...
    I will just use this thread to post news stories about dollar vs DR issues in the DR.

    September 30, 2004 12:47 PM US Eastern Timezone

    Dominican Republic Bondholders' Committee Formation

    NEW YORK--(BUSINESS WIRE)--Sept. 30, 2004--A group of holders of the US Dollar-denominated bonds issued by the Dominican Republic have formed a committee to organize and to coordinate bondholders' efforts in light of recent developments. The Committee's membership includes Grantham Mayo, Fiduciary Trust International Limited and other significant institutional holders of the bonds. The Committee has engaged Bingham McCutchen LLP as its legal counsel. Interested holders of US Dollar-denominated bonds (of any issue) issued by the Dominican Republic are encouraged to contact the Committee through counsel. Counsel contact details are as follows:

    Timothy B. DeSieno
    Bingham McCutchen LLP
    399 Park Avenue
    New York NY 10022
    tel +1 212 705 7426
    fax +1 212 508 1458
    email tim.desieno@bingham.com

    or

    William F. Govier
    Bingham McCutchen LLP
    One State Street
    Hartford, CT 06103
    tel +1 860 240 2777
    fax +1 860 240 2800
    email william.govier@bingham.com
    Upset the dollar is dropping, are we? Wonder if they could force a sale and make the government come up with mucho dollars.

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    Quote Originally Posted by Lechero
    These bonds are issued as $USD denominated debentures and are guaranteed payment of interest and principle at maturity. What would selling bonds before maturity accomplish?

    There has still not been a single press release explaining the devaluation of $USD vs $RD.
    Well you don't get lawyers together for nothing.

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    I will just use this thread to post news stories about dollar vs DR issues in the DR. Unless they got them hidden in the basement the government needs dollars soon!

    More dollars for lights
    The Dominican government has promised to pay the generators US$60 million over the next three months. Yesterday 15-20 hour blackouts were still affecting the country, although in some areas more hours of power were delivered for a slight relief. Energy sector officials Radhames Segura, Ruben Montas and Francisco Mendoza met yesterday with the heads of Ede-Norte, Ede-Sur and Ede-Este (the power distributors), as well as representatives from Itabo, Haina, Monte Rio, Seaboard, Smith-Enron, Cogentrix and Laesa. After the meeting, a government spokesperson said an agreement had been reached by which the government would pay US$60 million to the generators over the next three months in addition to the US$44 million already paid. Segura, who is the executive vice-president of the CDEEE, told reporters from Hoy that the government was trying to obtain US$25 million from the World Bank to help stem the crisis. According to him, the electric situation should start to improve within ten days.
    Segura also announced that President Fernandez would reveal the government's plans for the medium and long terms to resolve this greatest of the current crises.
    The electricity distributors, known as the EDEs, have furthermore promised to renew their efforts to collect sufficient money from their clients during October, November and December so that the government may hand over the US$20 million to the generators each month.
    With the new plans, Segura said he expected generation to ascend to 2,000 MW, sufficient to meet demand. The Dominican Republic has 3,600 MW of installed generation, but, with most of the units shut down, the daily demand cannot be met. Yesterday, generation was a mere 468 MW, while demand represented more than 1500 MW

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    Bottom falls out of the dollar market
    The dollar was being sold yesterday for RD$31.25, while the purchase price reached RD$27.50. This is the lowest exchange rate since the weeks immediately after the collapse of Baninter and certainly the lowest peso price of a dollar in 2003 or 2004. Since 16 August, the dollar has fallen from RD$42.35 to RD$31.25, representing over a 25% decrease in cost. Yesterday, more than ever before, the dollar's price was "subject to change" in the principal banks of Santo Domingo. The greatest change was noted in the "buy" price, however. A quick survey of six of the biggest commercial banks showed that the US currency was selling for between RD$31.25 and RD$33.50, while the dollar was being purchased for RD$27.50 and RD$30.00. Some banks started the day buying dollars at RD$31.50 and by that afternoon were offering just RD$28.00. Freddy Ortiz, the head of the remittance companies association, told El Caribe reporters that there was no justification for the exchange rate activity. Augusto Peignand, the head of the money exchangers' association, said that such a low exchange rate is not favorable to certain sectors of the economy and admitted that he was confused by the sudden drop in exchange prices. Some people who were questioned said that the lower exchange rate was a positive sign that some confidence was returning to the Dominican economic environment. Check out http://dr1.com/forums/showthread.php?t=26541 to see what people are changing for today.

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    From Yahoo group "SousaDominicanRepublic" today (5 Nov 2006)

    There is a thread on our group where a member who is a friend with an big
    money exchanger in Santiago and knows the trends a few weeks ahead says the
    peso will rise to 20:1 over the next month so the government can cash in on
    the usual holiday influx of dollars from tourists and Dominicans living
    abroad. Problem is the peso is still only actually worth 50:1. I don't know
    how they are doing this!
    :x

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    Quote Originally Posted by JohnG664
    Problem is the peso is still only actually worth 50:1. I don't know
    how they are doing this!
    :x
    Bro, the explanation is in the post above yours...they're bankrolling it themselves!

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    Quote Originally Posted by JohnG664
    From Yahoo group "SousaDominicanRepublic" today (5 Nov 2006)

    There is a thread on our group where a member who is a friend with an big
    money exchanger in Santiago and knows the trends a few weeks ahead says the
    peso will rise to 20:1 over the next month so the government can cash in on
    the usual holiday influx of dollars from tourists and Dominicans living
    abroad. Problem is the peso is still only actually worth 50:1. I don't know
    how they are doing this!
    :x
    Hopefully there will be a fire sale soon. Whatever needs to happen to put it above 40 works for me.

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    Quote Originally Posted by gdogg

    Hopefully there will be a fire sale soon. Whatever needs to happen to put it above 40 works for me.
    I don't know, bro...I doubt it'll see 40 until some time after New Year's...This year the "touristas" are going to get fucked a little while they're fukkin', I'm afraid. :shock:

    Think of it as a "National Tax" on "holiday mongering" :cry:

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    What's your guess on what it will be Dec. 31- Jan. 10?

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    Quote Originally Posted by gdogg
    What's your guess on what it will be Dec. 31- Jan. 10?
    mid-low 20's...Just a wild-ass guess, mind you, my bro. :?

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    DAMN!! I hope you are way off base. If you're not, I'm doing nothing but Jimmy's 500 peso chicas. And rationing them as well!
    :shock: :cry:

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    damn, the peso get that low, my prices go down. won't even dream of messing with a palace chica...can't afford them anymore.

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    I took a gamble and got 10000dr at 32/1 before i left. Palace Chicas need a lesson in supply and demand. Only one worth inflated prices is Merolyn. OH i miss that tight little bootie. OH i miss that tight little bootie. That is for each ass cheek. Had to pay to get her hair done. Seems CIH ( cum in hair ) makes chica mad. I sorry!!!!!!!!!!!!!!!!

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    Now that's funny!!!!!

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    Quote Originally Posted by guttaman
    I took a gamble and got 10000dr at 32/1 before i left................ ......Seems CIH ( cum in hair ) makes chica mad. I sorry!!!!!!!!!!!!!!!!
    Smart! 8) ...................and Funny

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    Quote Originally Posted by cremaconpalo
    Quote Originally Posted by guttaman
    I took a gamble and got 10000dr at 32/1 before i left................ ......Seems CIH ( cum in hair ) makes chica mad. I sorry!!!!!!!!!!!!!!!!
    Smart! 8) ...................and Funny
    Yeah it made her mad because now she has to take the 1000 or so pesos that you gave her (Boston Jim) and get her hair washed...

    You are an animal man.

    LOL.

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    Quote Originally Posted by knottydredd
    damn, the peso get that low, my prices go down. won't even dream of messing with a palace chica...can't afford them anymore.
    Oh yeah. The palace chicas will just be my hang out buddies. When I want to spend time, I'm hitting Pedro Calisante or following Jimmy wherever he goes!

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