Dominican Republic Extremely High PricesDon’t let your travel agent give you
false information that Dominican Republic is cheap. It is NOT TRUE! The prices are triple US prices for basic necessities. Add insult to injury 85% of their people are poor!
The problem began when last president drove dollar to 56 to 1. Prices skyrocketed.
The elections rolled around and voters sent President Mejia packing his bags. The new American raised president, Leonel Fernandez took on huge loans with International Monetary Fund and he raised taxes American style to unbearable levels for their impoverished people.
This immediately plummeted dollar back down to 28 to 1. After about 6 months merchants lowered prices on some items by approximately 10% and raised prices on most items to a comparable price as if dollar were at around 60 to 1. Everyone refuses to lower prices even though peso revalued 50%! Prices continue to climb on everything. From a Coca Cola to a new car.
What that means to tourism is certain failure. Their Zona Franca that depends on a lower labor forces is crumbling with devaluation of dollar verses their worthless over valued peso.
The actual exchange rate is about 60 to 1, but exchange rate is being falsely held down with Presidential hype, huge taxes and borrowed dollars. So in other words when a tourist exchanges dollars at 28 to 1 he is loosing 50% right from get go. There are many poor people who have money sent from relatives who work for dollars in US. When theses poor people receive their dollars from abroad they are forced to trade them at a 50% loss. When they go to grocery store to buy foods prices are based at 60 to 1.
