Here's another reason for Gringos to go to COL.. NOW!!!

Dan says on Dec 8, 2004, 12:13:

been watching myself Just think... a few weeks ago it was 2550's or so per dollar. the other day I saw it was down to 2422 per dollar, so I'm expecting the peso to keep getting stronger down below 2400's.

Who knows? we'll see sooner or later.
Dan

God Bless America!

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adrimm says on Dec 8, 2004, 12:20:

Wouldn't worry If it keeps up I reckon Col will maybe move up on the destination list (still affordable), as a number of other places become too costly to visit.

Although there are probably trade losses to the Colombian Economy due to the dropping dollar/rising peso, my relatives seem soo encouraged to see their currency rising.

Too bad they don't realise that ever other currency is rising too.

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ColombianoX says on Dec 8, 2004, 12:25:

Can someone please explain to me why the strengthening of the peso can be a bad thing for colombians living in Colombia? What would have to happen for one colombian peso to equal one US dollar? Thanks


ColombianoX

ColombianoX 'Defensor de la Colombianidad'

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caslug says on Dec 8, 2004, 12:26:

falling dollars.. generally will keep americans at home, i meet several american travellers that decided NOT to goto Europe this year because it's getting more expensives. BUT good news for COL, is that the euro£ is stronger vs peso(i think) meaning more eroupean tourist will visit, maybe making up for any lost gringo tourist.

It just sucks right now to be a gringo tourist.

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kernow62 says on Dec 8, 2004, 12:44:

It doesn't suck Colombia is still a real bargain. Try to find a meal in Europe for a couple of dollars, I did this many times in Colombia. What about a nice hotel close to the beach for $30 a night. It is still a great time to travel to Colombia, that little difference is less than chump change.

In fact if the dollar had not been so weak compared to the pound I would have been in the UK instead of Colombia and then i would have missed all the great things Colombia has to offer.

Now it is costing me a lot more to run my business as 90% of my stock comes from the UK and I am in the US, but nothing I can do but go with the flow.

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sandramoreno80 says on Dec 8, 2004, 12:45:

I can remember during 1995 when I was only holiday in Colombia and you could buy US$1 for $900. During the years the devaluation of the Colombian peso has been tremendous, which terrible inflation that my grandmother always moans about.

And just from one year to another you see the huge difference in prices, I've been going to Colombia yearly from 1995 and you see how the prices have jumped up.

A weak dollar can mean that those Colombian families that receive fixed "giros" o "remesas" will have less pesos than before, or their family members abroad has to absorb the fluctuations and pay more dollars to send the same amount of pesos as before.

I'm from London and my dad sends the same amount of colombian pesos each month, so he takes on any exchange fluctuations. From an all high of $4,950 per £1 in the summer, we are now sending giros at around $4,660 per £1.

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caslug says on Dec 8, 2004, 12:51:

COLX.. here's an real life economic example of exchange rate..
I was in BOG and bought COL coffee from Cafe OMA as gift, the 250g coffee bag cost 5,000 pesos, w/ exchange rate of $2500peso/dollar, sot he coffee was $2USD. Now if the peso was 1000 peso/dollar then my coffee would cost $5USD. First I(probably many US businesses) would decide that it's not economical to buy Coffee from COL, maybe they'll buy coffee(or other COL products) from other countries. Thereby hurting the COL economy.

Why do you think China & Japan want/try to keep their currency artifically low against the dollars.

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caslug says on Dec 8, 2004, 12:53:

Kernow.. I recognize that COL is still a bargain, but can't help feeling sad with the falling dollar. My first trip to COL, the peso was $2800/dollar, 2nd trip it was $2500/dollar, so in a real sense my spending power during my second trip DECREASE by 10-12%, compare to the first trip. I wish i new about COL LAST YEAR, when it was 3000 peso/dollar.

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viewpoint says on Dec 8, 2004, 13:03:

Peso - Tomorrow Another Day With the holiday in Colombia today the currency market (and other markets) were closed but tomorrow will bring some pressure on the Colombian Peso vs. US dollar. There are still stong inlows of foreign currency buying the peso chasing the yield in Colombia as well as offshore funds being brought back home (repartriated) but when (not if) the USA interest rates tick higher to defend inflation the Colombian peso will continue its retreat. The central government still has a lot of problems with long term debt approximating its total annual GNP. Expect the Colombian peso to pop above 2500 tomorrow under some pressure from a stronger US dollar (probably short lived). The short term outlook for the Colombian peso may be good but the long term is not.

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viewpoint says on Dec 8, 2004, 13:44:

Tinto I am not sure I understand the math as if the US dollar tumbles (as it already has) imports become more expensive in US dollar terms, therefore the costs of all imported items (for the most part) increase. The euro and pound sterling are the two primary currencies that float free (for the most part) and look where they are now compared to a few years ago against the dollar. Japan munipulates it currency against the dollar while China pegs it to the dollar. If you would have moved out of the US dollar into the euro, pound sterling or even Colombian or Chilean peso over the past year or two you would be recording a big profit. The debasing of the US dollar is just another form of taxation. Colombian has practiced it forever. Evertime I receive a 10, 20 or 50 peso coin I take it home to save as it will be a collectors item for a time that there is 20,000 Colombian pesos for the US dollar. I was in Quito, Ecuador when the sucre collapsed to 30,000 to the US dollar. For a breif period you could buy real estate there really cheap (in US dollar terms). What do you think the money comes from that buys those fancy condos in Miami that the wealthy south americans live in. The park there capital in US dollars and bring them back to their home countries when their own currencies collapse to buy real estate cheap and then run the cycle again. This time they might have got caught in the depreciation of the US dollar against other currencies. I remember 18% prime rates and 13% 30 year treasuries during the last of the Carter presidency when the US dollar almost collapsed.

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adrimm says on Dec 8, 2004, 13:51:

Currency wasn't the COP on par with the USD once upon a time? (50s or so?)Or was it one of these currencies tied to the USD then?

Also the strenthening Euro is good becuase then they will prob start importing more goods from Colombia. Unfortunately the distance probably still limits the type of imports.

Caslug, no offense, but I feel it's a bit petty to be complaining about a 10% difference when it comes down to a daily price difference of literally a few dollars (ie a coffee at starbucks).

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adrimm says on Dec 8, 2004, 13:54:

D_N So not fair. One of my friends works in London and he can afford to go anywhere. Meanwhile, your poor Canadian colonists have had to struggle to afford trips to see our American cousins. Thank god for Colombia.

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Tinto (Moderator) says on Dec 8, 2004, 13:54:

In my coffee example.... ...the U.S. exchange rate does not mean a lot to U.S. importers or consumers because the international coffee price is set in dollars to begin with.



...you are absolutely right, though, that if a U.S. company is buying Colombian blue jeans or Colombian chemicals, the U.S. firm is paying higher prices and eventually passes them along to the U.S. consumer. Or, as is happening with greater frequency now, keeps retail prices the same and buys from someone like China.

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caslug says on Dec 8, 2004, 13:59:

Adrimm.. I know that 10% might be little, but that's 10% form 6 mos ago, BUT it was 25% from a year ago. i'm more concern that it drops another 10% then another then another, etc., Also, I guess human to complain when you LOSE value versus when you gain. If it was always $2500 peso/dollar no one would complain. Kinda like (i'm peeve at this too) that the your (canadian) dollar is now 1.2CAD/USD, i remember the good o'days back in 2000 when i was in Calagary and got 1.4CAD/USD.

Beside, being american we always complaining when we don't get our way! LOL

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viewpoint says on Dec 8, 2004, 14:02:

Weaker US$ vs Colombian Peso Benefits the Colombian central government and Colombian companies with US dollar denominated debt because it becomes cheaper (less expensive in Colombian Peso terms) to payoff.

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caslug says on Dec 8, 2004, 14:10:

economics comes down to.. how it affects YOU!! Exhcange rate, foreign defict means squat unless it impacts you on a daily basis.

Consumer goods in US is at a all time low, due to US retails a) keeping labor cost low(ie, Walmart), b) keeping cost down with their supplies(beause US Corporation has the clout), or c) taking a profit hit(yeah right). It's probably a combination of all three. The only REAL internation fluxation that US consumer get hit with is our OIL/GAS. BECAUSE the US OIL company have a virtual monopoly and can pass the cost along to US consumers. Other industries don't have that clout.

But the falling dollar is directly affecting me or any gringo tourist traveling abroad these days. No if, and, or buts about it. Sure things are still cheap(compartively to US or other places), but damm it, it was alot cheaper 6-12 mos ago. Oh, well, we're paying for the consequences (high defit, war spending, etc.,) of the actions/policies our country has made, right or wrong.

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adrimm says on Dec 8, 2004, 14:34:

Awww Aw poor widdle caslug finwee dealing wi whad da rest o da world deals wid.. (*fine*, most of the rest of the world, shaddup don_negro).

Look at it this way, maybe Colombians will finally be able to have a little more equity in their options for vacations, instead of being shuttered into Colombia becuase most of them can't dream of affording anywhere else.

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caslug says on Dec 8, 2004, 14:41:

weaker dollars I didn't think it was soley economic that was keeping COL in COL from taking vacation abroad. I thought it had more to do w/ Visa situations. I agree that a weaker dollar does help COL do things like paying off it's debt, BUT only if the weaker dollars is not hurting exports. Like i said, interntional econmic issues are complex, it really comes down to how it affect you as an individual?

Also, weaker dollar is going to hurt all those gringos with COL GF/WF because it getting more expensive to visit them in COL. CP is now paying 10% more for his dates w/ his hotties in Cali. LOL.

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Crazy4Cali says on Dec 8, 2004, 16:03:

You've convinced me I'll be heading down there in a couple of days.

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caslug says on Dec 13, 2004, 17:21:

a funny article about gringos.. complaining of the weak dollar, one family complain that it was that had to eat at McDonald in London, because the other places were to expensive.

http://www.msnbc.msn.com/id/6706187/

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YEP says on Dec 13, 2004, 17:31:

Caslug hows the Euro as currency in Colombia
generally will keep americans at home, i meet several american travellers that decided NOT to goto Europe this year because it's getting more expensives. BUT good news for COL, is that the euro£ is stronger vs peso(i think) meaning more eroupean tourist will visit, maybe making up for any lost gringo tourist.

It just sucks right now to be a gringo tourist.

------------------------------------------------------------------- Just another scandinavian getting ready to explore South America

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caslug says on Dec 13, 2004, 19:34:

YEP, i don't know.. what if the euro get stronger or not against the COL peso, i suspect it should. If that's the case, you'll have COL to be better bargain than you thought.

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YEP says on Dec 14, 2004, 01:39:

Yes I checked on
www.xe.com (this morning)

1.00 EUR = 3,249.82 COP

or EURO / USD

1.00 EUR = 1.33126 USD

So travelling in countries that use USD as a backup currency is the way to go ;-) (The whole of South America should be subject for my endavour then)

------------------------------------------------------------------- Just another scandinavian getting ready to explore South America

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