should I buy CO Pesos here in America before the dollar goes back down???

deejboram says on Jun 30, 2008, 10:27:

I was wondering the same thing. But I can't find any place that sells Col Pesos in NYC.

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Tinto (Moderator) says on Jun 30, 2008, 10:31:

Here's an idea. Send yourself a Moneygram and pick it up in August. I just looked and they hold the rate for 45 days.

It costs $15 USD to send $500 USD and the rate you'll get is 1885 COP/USD. Depending on your ATM card/bank, you might pay $8 or $10 for two ATM transactions trying to take out the equivalent amount IN Colombia. It's not a bad deal...

Same Day Service
Transfer Amount : $500.00 USD
Exchange Rate : 1885.290000 COP
Receive Amount : 942645.00 COP**
Consumer Fee : $ 14.99

Total Cost : $514.99

** 1 USD = 1885.290000 COP

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JCochranUSN says on Jun 30, 2008, 10:33:

moneygram as in Wester Union?

Do you think that's very reliable in Colombia? Hell, I don't even know how I'd find a Western Union there...lol.


So you do think its safe to say that the exchange rate will not be as good by the time August rolls around?

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adrienne79 says on Jun 30, 2008, 10:34:

No one can tell you for sure what the rate will be in August. Either way it is a risk. If you are okay with the exchange at 1900 go for it but you must realize the rate could be better in August, the same, or worse.

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bigtexas1974 says on Jun 30, 2008, 10:34:

Moneygrams and Western Unions can be found in almost every major Supermarket chains, and many smaller shops also. Very reliable and easy to find... However I would wait, I don't think its done working to your advantage yet.

"Sex is one of the most wholesome, beautiful, and natural experiences money can buy." - Steve Martin "You don't appreciate a lot of stuff in school until you get a little older. Little things, like getting spanked every day by a middle aged woman."

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Tinto (Moderator) says on Jun 30, 2008, 10:36:

MoneyGram is a competitor of Western Union and from what I've seen they have lower fees, esp. for online service. You can find plenty of MoneyGrams in Colombia, including small offices in some of the Carullas (a grocery store chain).

I have no idea where the COP/USD will be in August. I don't make those kinds of predictions.

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durito says on Jun 30, 2008, 10:38:

I´d just get a bank account with little or no fees for foreign ATM transactions and hope for the best ie the exchange rate

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nbenjamin says on Jun 30, 2008, 10:43:

I would not make the exchange now. The reason the currency is returning to 2000 (ish) is because the Colombian government usually attempts to control the currency to make sure it does not deflate to much. They stopped this because of how strong the Peso has become. There is no plans to initiate the process again until August 8. At that time you will be there, and should be able to beat any big bounce assuming the Colombian government intervenes. And that is a big assumption the increasing power of the peso apparently has negatively impacted Colombian exports.

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JCochranUSN says on Jun 30, 2008, 10:45:

Here's an idea possibly...

if I moneygram/western union myself some cash, and then before I leave I see that the exchange rate is HIGHER...can I go to Western Union here in the states and CANCEL the Moneygram and get my cash back??

can you cancel moneygrams and get your cash back on the spot?

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Tinto (Moderator) says on Jun 30, 2008, 10:52:

I only glanced at some of the small print (there's probably more) and it said the rate changes to "market" after 45 days. You could win or lose. I don't know about cancellations.

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JCochranUSN says on Jun 30, 2008, 10:59:

nbenjamin...

I'm not actually due to go to Colombia until the 20th of August. If the Colombian government DOES intervene on August 8th, how long do you think it would take for the change to occur in the currency??

THANKS!

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ColombianoGringo says on Jun 30, 2008, 11:15:

Moneygram and Western Union don't give you the official rate. They shave a certain amount off. In fact, their terms of service tell you that they make money in this way in addition to the fees.

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beisbollover says on Jun 30, 2008, 11:17:

Interesting post....

JCochran, you seem smart enough to know that predicting the exchange rate of a future date is like betting at a casino. Even the best brokers can only lower their risk, but it is still a guessing game.

The whole concept of wiring money to yourself today to pick up at a later date to lock in a rate is very interesting. I hope to find out the real rules to all of this. I also wonder if your bank can order you Colombian Pesos somehow. If the fee is small that might be the safest bet yet.

nbenjamin made a very very good post. It is true that the Colombian economy is better off with a week exchange rate to our dollar. And it seems as if somehow the government there has turned the swing for their own currency. Where as most countries are getting stronger against the dollar Colombia somehow stopped this and is now going the other way.

I also am going to Colombia for two weeks starting August 16th so I will watch closely at the info posted here. Thanks again for such an interesting post.

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RJQuilla says on Jun 30, 2008, 11:51:

Good point made as I am going to be in Colombia in August around the 11th. I hope the Govt leaves things as is a little longer till I get there and situated. I have not xchanged for the COP over 2k since 06. Would be very nice for a change.

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sanandressi says on Jun 30, 2008, 12:53:

Just go and have a good time........1200 when I first wwent in 97 and darn near 3000 in 2005 or 2006 I don't remember which. Had a great time at 1200 and a great time at 2900 just the same! If I pay more someone is doing better and if I pay less someone is doing worse so what can you do either way?

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nbenjamin says on Jun 30, 2008, 12:59:

JC-USN - Great point. I am pretty sure but do not quote me, you can send the Moneygram money to Colombia and if the exchange rate gets even better, then you can get the money back for free. I am almost positive, but you need to double check this.

As for predicting the money market, I have no clue. It is particularly hard to predict the Colombian Peso because it is a so called "soft" currency - one that is not traded extensively. What I stated was a guess - The reason the Dollar is going up (and it has jumped quick (from aprox. 1650-1920 in less than a week) is a change in Colombian policy based on the weakening dollar. A policy that is not going to be evaluated again until August 8 (I think). A guess - but again a wild one - is Colombia will continue to insist on a policy that leaves the dollar strong against its Peso for the sake of export. But this is just a wild prediction - and I am not the best person to listen to.

A great way to beat this would be to send yourself the money now and just wait and see. I am almost positive that you can just get your money back if it is never picked up. Great way to beat a system that generally beats us. I am going to try that.

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bhill says on Jun 30, 2008, 15:46:

The places you could exchange dollars->pesos (the bank and the exchange place in a major airport are the only ones I can think of) in the US will give a terrible exchange rate...

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poco says on Jun 30, 2008, 19:08:

I'd load up on Pesos,, yep a great investment,, just think,, you could have bought eight pesos for ONE DOLLAR in,, 1965 ?

You could make what ??? lets say 10 times your investment ??? Now you'd have gosh,, 100 or so pesos ???

Good trade,, turning one dollar into a nickle,, maybe you'd get lucky,, a dime.

I keep enough pesos around to last a few months,, maybe more,, plus I have developed a business that generates pesos,, so,, the exchange rate isn't that important any more.

"When you men get home and face an anti-war protester, look him in the eyes and shake his hand. Then, wink at his girlfriend, because she knows she's dating a pussy." Quote - General Tommy Franks

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Alex Delgado says on Jun 30, 2008, 20:45:

You are better off using your credit or debit card while you are in Colombia, the exchange rate will be better and you do not have to fumble and juggle all the cash you will have to carry around with you, this one you can keep smaller amounts of money with you at all times!

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goin_south says on Jun 30, 2008, 23:37:

USN... I am imagining that the exchange is going to be about 100 pesos up or down from where it is now, come August. WTF knows???!!!

But then I don't know chit, either. If I'd bet that, then for sure, it would be up or down by 101.5

I'D RATHER BE.........IN COLOMBIA :-)).... (No Quiero Conozco Gustav)...(TEMPORARY NAME CHANGE: RUNNIN_NORTH! JEJE!!!)

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scumbuster says on Jul 1, 2008, 05:24:

I heard that the US, in a deal with the European Union will raise the interst rates this fall. The expected effect would be to increase the value of the dollar.

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