Comments on: The Colon Vs The Dollar – Watch your money! http://blog.therealcostarica.com/2007/08/12/the-colon-vs-the-dollar-watch-your-money/ The Blog for Travelers, Retirees, Expats and anyone who needs to know the REAL Costa Rica. Tue, 17 Nov 2009 01:00:32 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Philip http://blog.therealcostarica.com/2007/08/12/the-colon-vs-the-dollar-watch-your-money/comment-page-1/#comment-16484 Philip Sat, 01 Aug 2009 01:50:13 +0000 http://blog.therealcostarica.com/2007/08/12/the-colon-vs-the-dollar-watch-your-money/#comment-16484 just back from CR; 580 colones to $1 - what do you suggest now as far as accounts? Colones or dollars and why? just back from CR; 580 colones to $1 – what do you suggest now as far as accounts? Colones or dollars and why?

]]> By: Travis http://blog.therealcostarica.com/2007/08/12/the-colon-vs-the-dollar-watch-your-money/comment-page-1/#comment-13341 Travis Sun, 17 Aug 2008 14:36:57 +0000 http://blog.therealcostarica.com/2007/08/12/the-colon-vs-the-dollar-watch-your-money/#comment-13341 I am a commodity trader in the US. My parents live here in Costa Rica. The recent strength in the dollar vs the colon (currently $1 = c547) could potentially be a great opportunity for foreign residents in Costa Rica. My parents periodically moved dollars to Costa Rica and then convert them to colones as they need them to pay their living expenses. I have recommended that they look at what they spend over one year, then take a percentage say 30% of that total and convert it into colons. Then use a portion of these colons each month to cover a portion of their living expenses. This is a simple hedge. They know they will be here for another year and will need to buy colons each month to pay expenses. If the dollar strengthens more vs the colon, they well get a better exchange rate on the 70% they have not "hedged". If the dollar weakens vs the colon, they will win on the 30% they already converted to colons. It's a conservative way to lock in a portion of the recent strength in the dollar. I am a commodity trader in the US. My parents live here in Costa Rica. The recent strength in the dollar vs the colon (currently $1 = c547) could potentially be a great opportunity for foreign residents in Costa Rica. My parents periodically moved dollars to Costa Rica and then convert them to colones as they need them to pay their living expenses.

I have recommended that they look at what they spend over one year, then take a percentage say 30% of that total and convert it into colons. Then use a portion of these colons each month to cover a portion of their living expenses.

This is a simple hedge. They know they will be here for another year and will need to buy colons each month to pay expenses. If the dollar strengthens more vs the colon, they well get a better exchange rate on the 70% they have not “hedged”. If the dollar weakens vs the colon, they will win on the 30% they already converted to colons. It’s a conservative way to lock in a portion of the recent strength in the dollar.

]]> By: Tim http://blog.therealcostarica.com/2007/08/12/the-colon-vs-the-dollar-watch-your-money/comment-page-1/#comment-13281 Tim Mon, 21 Jul 2008 16:53:26 +0000 http://blog.therealcostarica.com/2007/08/12/the-colon-vs-the-dollar-watch-your-money/#comment-13281 You have it backwards... the colone is WEAK against the dollar in July 2008. One dollar buys MORE colones than last December. About 60 more colones per dollar. Now to your question and a good one... I have no idea. Regardless of the prior comment, the influencing factors do not apply here. In fact, looking at the EURO which was about 127 to the dollar in December 2007 and is around 150 today, the colon should be stronger as the dollar dropped. The dollar has dropped against world currencies but is stronger against the colon. THAT of course makes no sense and the reason they give (a shortage of dollars) is silly. Hell, if they needed dollars, they could buy them with Euros! So given the apparent manipulation and the banks unwillingness to allow the dollar to seek a value normally, keep your money in dollars. You made a nice profit last week if you had your money in a dollars account. Some folks think a EURO account would be a good idea, but I just have no idea though it seems to be a stronger currency than the $ in recent months... Also, realize I am NOT a financial pro and not giving advice... so you are on your own. As what is happening here makes no sense anyway.... you're on your own as am I. You have it backwards… the colone is WEAK against the dollar in July 2008. One dollar buys MORE colones than last December. About 60 more colones per dollar.

Now to your question and a good one… I have no idea.

Regardless of the prior comment, the influencing factors do not apply here. In fact, looking at the EURO which was about 127 to the dollar in December 2007 and is around 150 today, the colon should be stronger as the dollar dropped. The dollar has dropped against world currencies but is stronger against the colon. THAT of course makes no sense and the reason they give (a shortage of dollars) is silly. Hell, if they needed dollars, they could buy them with Euros!

So given the apparent manipulation and the banks unwillingness to allow the dollar to seek a value normally, keep your money in dollars. You made a nice profit last week if you had your money in a dollars account.

Some folks think a EURO account would be a good idea, but I just have no idea though it seems to be a stronger currency than the $ in recent months…

Also, realize I am NOT a financial pro and not giving advice… so you are on your own. As what is happening here makes no sense anyway…. you’re on your own as am I.

]]> By: Ted http://blog.therealcostarica.com/2007/08/12/the-colon-vs-the-dollar-watch-your-money/comment-page-1/#comment-13280 Ted Mon, 21 Jul 2008 16:18:16 +0000 http://blog.therealcostarica.com/2007/08/12/the-colon-vs-the-dollar-watch-your-money/#comment-13280 so does this theory still apply in july 2008. the colone is strong against the dollar once again, should i switch my dollar account to colones?? so does this theory still apply in july 2008. the colone is strong against the dollar once again, should i switch my dollar account to colones??

]]> By: Tim http://blog.therealcostarica.com/2007/08/12/the-colon-vs-the-dollar-watch-your-money/comment-page-1/#comment-13255 Tim Tue, 15 Jul 2008 21:58:21 +0000 http://blog.therealcostarica.com/2007/08/12/the-colon-vs-the-dollar-watch-your-money/#comment-13255 You are responding to a post made in August 2007. A couple of months later, the dollar fell sharply and those who listened and placed their money in colones made a nice windfall. There is STILL not reason for the dollar to be this strong and what is happening in June 2008 is nothing more than manipulation. It is not backed by any reasonable actions or activity. You are responding to a post made in August 2007. A couple of months later, the dollar fell sharply and those who listened and placed their money in colones made a nice windfall. There is STILL not reason for the dollar to be this strong and what is happening in June 2008 is nothing more than manipulation. It is not backed by any reasonable actions or activity.

]]> By: Paul Gehl http://blog.therealcostarica.com/2007/08/12/the-colon-vs-the-dollar-watch-your-money/comment-page-1/#comment-13254 Paul Gehl Tue, 15 Jul 2008 20:44:21 +0000 http://blog.therealcostarica.com/2007/08/12/the-colon-vs-the-dollar-watch-your-money/#comment-13254 Wow what a bad call on the dollar. Why would someone want to bet on such a small economy with no oil. Expect the Colone to fall more from the 540 to $1. The huge load of debt behind the Euro and Yen makes the US$ the place to be in times of trouble. Always has always will be. Wow what a bad call on the dollar. Why would someone want to bet on such a small economy with no oil. Expect the Colone to fall more from the 540 to $1.

The huge load of debt behind the Euro and Yen makes the US$ the place to be in times of trouble. Always has always will be.

]]> By: Steve http://blog.therealcostarica.com/2007/08/12/the-colon-vs-the-dollar-watch-your-money/comment-page-1/#comment-13014 Steve Wed, 21 May 2008 12:30:40 +0000 http://blog.therealcostarica.com/2007/08/12/the-colon-vs-the-dollar-watch-your-money/#comment-13014 approx 500 colones = 1 dollar approx 500 colones = 1 dollar

]]> By: nick andrix http://blog.therealcostarica.com/2007/08/12/the-colon-vs-the-dollar-watch-your-money/comment-page-1/#comment-13009 nick andrix Tue, 20 May 2008 13:29:01 +0000 http://blog.therealcostarica.com/2007/08/12/the-colon-vs-the-dollar-watch-your-money/#comment-13009 how many costa rican money makes one usa dollar $1.00 how many costa rican money makes one usa dollar $1.00

]]> By: Brian Warren http://blog.therealcostarica.com/2007/08/12/the-colon-vs-the-dollar-watch-your-money/comment-page-1/#comment-12375 Brian Warren Thu, 22 Nov 2007 21:14:30 +0000 http://blog.therealcostarica.com/2007/08/12/the-colon-vs-the-dollar-watch-your-money/#comment-12375 If you follow trends, you are bound to get burned. A smart investor doesn't start by looking what has been "going up" recently. He tries to measure perceived value to real value. Put another way: Everything being equal, a declining dollar is just as likely to indicate that it will RISE in the future as fall. "Past performance is not indication of future results". The richest investors have all made their money investing in things when no one else would. "Be wary when everyone else is greedy. Be greedy when everyone else is wary." Applied to the dollar/colón scenario, you should buy colones only if you are very sure that A) the colón has truly been artificially devalued to the dollar and B) the Central Bank really will change the exchange rate. Or, you might see the dollar as an excellent investment, seeing as how it is such a bargain right now. If you follow trends, you are bound to get burned. A smart investor doesn’t start by looking what has been “going up” recently. He tries to measure perceived value to real value.

Put another way: Everything being equal, a declining dollar is just as likely to indicate that it will RISE in the future as fall. “Past performance is not indication of future results”.

The richest investors have all made their money investing in things when no one else would. “Be wary when everyone else is greedy. Be greedy when everyone else is wary.”

Applied to the dollar/colón scenario, you should buy colones only if you are very sure that A) the colón has truly been artificially devalued to the dollar and B) the Central Bank really will change the exchange rate.

Or, you might see the dollar as an excellent investment, seeing as how it is such a bargain right now.

]]> By: Robyn http://blog.therealcostarica.com/2007/08/12/the-colon-vs-the-dollar-watch-your-money/comment-page-1/#comment-12319 Robyn Sat, 10 Nov 2007 15:56:51 +0000 http://blog.therealcostarica.com/2007/08/12/the-colon-vs-the-dollar-watch-your-money/#comment-12319 My husband and I are coming to Costa Rica soon to look around for a place to possibly buy. How would you suggest we bring money in to the country..( cash, cashiers check, etc. ) and how much are you allowed to carry with you? While were looking around should we convert it and keep it in a Costa Rican bank? Also do you have suggestions on how best to get your social secutiy and Va pension from the US once we settle here. Thanks so much for your advise. My husband and I are coming to Costa Rica soon to look around for a place to possibly buy. How would you suggest we bring money in to the country..( cash, cashiers check, etc. ) and how much are you allowed to carry with you?
While were looking around should we convert it and keep it in a Costa Rican bank?
Also do you have suggestions on how best to get your social secutiy and Va pension from the US once we settle here.
Thanks so much for your advise.

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