Thread: Medellin Chit Chat Thread
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07-13-22 11:21 #447
Posts: 5459Originally Posted by Huacho [View Original Post]
When you exchange currency, either by withdrawal from an ATM in another country, or using a currency exchange office, you pay a fee (although at times the fee is zero or even negative, I'll explain). That fee takes many forms. Some banks charge for a foreign currency conversion, some charge for using a foreign ATM. Exchange offices give a rate which is less than the current rate. Even with no fees, there is usually a difference between the rate you receive and what the actual market rate is at the time of the transaction (which is how it's possible to get a negative fee, or get the money at a discount). All of this has been explained completely by both Villainy and FunLvr.
I don't know all of the various rates which you can buy pesos in the US. I know that at one time Bank of America customers could get pesos for a very good rate. If I remember correctly 1.5%. I also know that one of my banks, when I asked about it offered a terrible rate, worse than bad airport exchange rates.
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07-13-22 05:46 #446
Posts: 3220Originally Posted by Surfer500 [View Original Post]
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07-13-22 01:46 #445
Posts: 688Originally Posted by Zeos1 [View Original Post]
They are going to fluctuate. Forex rates will always depend on relative real interest rates, the balance of trade, and the perceived ability of the country to control and tax its citizens. But, all three of those components are continually fluctuating. Keep your wealth in a stable currency and go with the flow on exchange rates. If you live in Colombia, you're going to have to put up with it because you can't control it. If you are portable, you can live where your native currency is strong. But, that could change. Now, if you are based in a country with a strong currency and just travel periodically, then you can definitely benefit by traveling where the exchange rate tells you to.
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07-13-22 01:33 #444
Posts: 650Exchange Rate
For those of you who care. The Visa Exchange Rate, which is what you will get at the ATMs, tomorrow will be 4,513.
For those you who don't care. I return you to your regular schedule programming.
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07-13-22 00:38 #443
Posts: 156Trip reports not discussions
Originally Posted by Caboteur [View Original Post]
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07-13-22 00:04 #442
Posts: 4023I am very clear about the general risk profile. The recent peso slide is a pointed reminder. I'm not very clear about the benefit potential. Is there really enough profit potential to justify the risk of devaluation and loss of liquidity? It seems to me there are many other investment opportunities around the world. If nothing else, the pace of construction here limits the potential property value appreciation.
Originally Posted by Carter80 [View Original Post]
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07-12-22 19:47 #441
Posts: 2Originally Posted by Surfer500 [View Original Post]
I'm certainly glad I didn't buy the property I was looking at in early June as I'd be down 20% right away due to the devaluation, so to this point waiting has served me well.
My thinking on waiting is simply I want to have a better understanding of whether he has authoritarian leanings or not. If not, and the peso stabilizes I'll feel much more comfortable at that point. We all have our risk thresholds and while that might mean a missed opportunity, I'm willing to accept that. I also believe that this thinking is what's driving people to sell off on the peso, it's just a level of uncertainty that didn't exist before.
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07-12-22 19:39 #440
Posts: 4023El Colombiano is splashing the 4600+ and rising level of the US dollar today. Alongside the primary article is an editorial feature with the headline "is it possible to dollarize the Colombian economy?
It's an interesting proposal with historical precedent in Ecuador. As all of us know here, prices quoted in dollars tend to be higher than when they are quoted in a local currency. Let's hope the idea doesn't go farther.
Originally Posted by Surfer500 [View Original Post]
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07-12-22 18:50 #439
Posts: 3801Something To Consider
Originally Posted by Carter80 [View Original Post]
And if your a "small potato" investor, and not living in the Country more than six months a year and not considered a full time tax resident, you would only be subject to income taxes on your investment property. And if you have good Colombian accountant, those taxes can be mitigated.
Petro will most probably instigate the wealth tax again which expired a few years ago, along with going after owners of very large properties to tax them as well.
However in your case, as a "small potato", I don't think whatever he does will have much impact on you, in the short term, yet I get your concerns.
As far as waiting to see what happens after he is in power, well it might be at least a few years before there is anything significant taking place, except taxation I believe.
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07-12-22 17:36 #438
Posts: 4023You are right. There is no need to track the exchange rate if you use the currency for weeks at a time. Some of us use pesos full time. That is why the exchange rate is more interesting to us. When I vacation outside of Colombia I don't pay attention to the exchange rate for the reason you stated.
Originally Posted by Osteoknot [View Original Post]
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07-12-22 16:28 #437
Posts: 3220Originally Posted by RiceRocket99 [View Original Post]
But at some point, you would think the Colombian central bank would step in and stop this. You never see the Peruvian sol makes moves like this because the Peru puts a tight grip on its currency.
With the COP this weak, inflation in Colombia is going to be out of control. If I were Colombian, I would be screaming for Colombian authorities to stop this fall. It makes you wonder what is going on and why they are not. Are they trying to show up Gustavo? Are they the ones selling the Colombian assets? You would think at some point soon there would have to be an intervention.
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07-12-22 15:59 #436
Posts: 650Originally Posted by JustTK [View Original Post]
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07-12-22 15:39 #435
Posts: 2Originally Posted by Knowledge [View Original Post]
Further perspective, the euro is down 15 percent in the last year, and 4% since Jun 19, the peso as of this am is down over 18% since June 19 alome. The peso is clearly getting hit much harder. Further perspective, as a Canadian I need to follow the exchange rate with USD for various reasons and our dollar remains stable in the last month.
While markets are hard to understand, the impact of the election seems pretty clear to me. I'm an example of it, I was planning on buying an investment property in Medellin this year and have decided to wait for a while to see what he's like in power. I'm a small potato, but hard to believe I'm the only person who's decided not to move my money into pesos since Petro was elected.
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07-12-22 15:22 #434
Posts: 1088Originally Posted by JustTK [View Original Post]
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07-12-22 15:11 #433
Posts: 1779Originally Posted by Zeos1 [View Original Post]