The north coast tourism from the USA is almost not there. Playa Dorado does not even advertise packages in the States. The Travel section in the major US papers are pushing Punta Cana where people stay in the resorts run by foreign countries. The Dr gets the taxes but they are paid in pesos. Gasoline and building materials are a big import and are paid for in US cash or the Euro. In a previous thread someone stated that the banks were full of US cash. I doubt that very much. When the street price falls below the international trading price like it is doing now it means the government is controlling the in country exchange rate but the market knows that and is hedging on a raise in pesos to the dollar. Last January the peso was going for almost 1 peso over the international exchange rate on the street. Now it is going for about 1 peso on the street below the international exchange rate. It was also stated that businesses are expanding and reinvesting into their businesses in anticipation of CAFTA. If they are expanding most of the building supplies are being imported. I know the DR does a good amount of trade with Asia but i believe they would perfer the dollar over the DR peso. As the dollar weakens in the world market the DR will need more to deal with non US trade partners. The DR needs the Ben Franklins and the peso will creep towards 35 to 37 where most economist say it should be. I do not see this by x-mass but i seee it by May. If i am wrong i will buy anyone with over 200 post a beer in May. If i am on the money then it will only cost you a buck to buy me a beer. Looks like a win-win situation.
Originally Posted by guttaman
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