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DENNIS
Platinum Nomad
Posts: 29510
Registered: 9-2-2006
Location: Punta Banda
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| Quote: | Originally posted by morgaine7
No doubt a simplistic view of things (my specialty), but when the exchange rate is down, the stock market always seems to be up. So I figure I'm
getting fewer pesos to the dollar but earning more dollars to exchange, ¿verdad? |
Sounds like it. Amazing how the "break even point" has become an investment goal.
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absinvestor
Senior Nomad
Posts: 725
Registered: 11-28-2009
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Yep, the stock market loves a weak dollar!! Ron
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capitolkat
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Posts: 510
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Beercan-- memory is a fading thing-- when we were first figuring costs the dollar was right at 13 but Dec 1 it was 12.5019. and has been on a downward
trend since. The consequences to us is still an increase of 8-9% for costs of construction.
Life is too short to drink bad wine
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CortezBlue
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Posts: 2213
Registered: 11-14-2006
Location: Fenix/San Phelipe
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| Quote: | Originally posted by capitolkat
The exchange rate is a huge thing for some of us. We are building a house in La paz and every time the rate changes it costs us lots on the next
progress payment for the work underway. When we first estimated the costs in december the rate was right around 13. Now at 11.6 or lower our costs
have risen close to 9 % and unless the dollar rebounds it looks to go higher. Fortunately the first payments were above 12 but the tail end of the
construction looks to be painful. Norm |
Rebound?
This is a result of printing more and more US Dollars. The dilution of the dollar is part of the end results. You will also see the price of gas
start rising with the decline of the power of the dollar due to the dedication to purchasing oil with dollars exclusively.
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J.P.
Super Nomad
Posts: 1673
Registered: 7-8-2010
Location: Punta Banda
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Mood: Easy Does It
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| Quote: | Originally posted by capitolkat
Beercan-- memory is a fading thing-- when we were first figuring costs the dollar was right at 13 but Dec 1 it was 12.5019. and has been on a downward
trend since. The consequences to us is still an increase of 8-9% for costs of construction. |
I dont know how many houses you built in thr U.S. every one i built wound up costing 10 to 15% more than the original estimate due to inflation
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capitolkat
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Posts: 510
Registered: 3-9-2006
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J.P> US inflation has been running about 1-2% per annum for recent memory and I would take that in a NY minute to losing 8-9% to exchange rate
fluctuation in 6 months. My build is a flat rate contract- plus any change orders. So the only way to cost more for me is for my dollar to lose value
against the peso-- or to want more do-dads during construction. so far we have held the line on changes as we spent 3 years in planning the project.
Life is too short to drink bad wine
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J.P.
Super Nomad
Posts: 1673
Registered: 7-8-2010
Location: Punta Banda
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Mood: Easy Does It
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| Quote: | Originally posted by capitolkat
J.P> US inflation has been running about 1-2% per annum for recent memory and I would take that in a NY minute to losing 8-9% to exchange rate
fluctuation in 6 months. My build is a flat rate contract- plus any change orders. So the only way to cost more for me is for my dollar to lose value
against the peso-- or to want more do-dads during construction. so far we have held the line on changes as we spent 3 years in planning the project.
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In the ideal world that might work. but I cant rember when the cost of material ever held the true inflationary rate. If true how would one explain
the rise in fuel prices
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oldlady
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Registered: 10-31-2005
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FYI.....read this morning that the Central Bank of Mexico is reducing some of it's currency reserves (dollars) and in the last two months bought 100
tonnes of gold. Several factors influence exchange rates, but this is certainly an indicator that the peso is likely to continue appreciate vis-a vis
the dollar.
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