Real vs Dollar and other currency issues

[JWNoot]

The Marriott has an exchange rate of 1.80 versus $1. I've been exchanging at this rate since Tuesday 10/23.

Just an FYI.

JW

[Hojeobrigado]

Guys,

Just my 2 cents worth, last week, in the Copacabana Cambios, the rate was 1. 85. Citibank ATM in Ipanema was 1. 73 for a Wells Fargo Debit Card. HSBC was 1. 79 for AMEX and Visa. Cambios seem to be willing to give a small premium just now for dollars, however, I think it is mostly because Rio has a distinct lack of US gringos just now, saw many more Europeans and Asians. This was confirmed by a girl I took out of MP and used for a GF for 3-4 days, as she said American business was very bad right now.

Cheers,

Hoje

[Pipe Layer99]

This will be my 4th trip to the beautiful land of Bunda. So I already know where to get reals - cambios, Bobby (blameitonRio4travel), or at Help. My top 3 places.
Anyway, what I was looking for was ETs specific 'contact'. After numerous posts he never disclosed this information. Which tells me he is full of it. He never answered 'exactly' where to get such a better rate. If it was something like 1.79 at the cambio and 1.85 at Help, I bet he would be quick to point that out. Why - because thats something we can figure out for ourselves.
On another note, he is the only one who gets special treatment at lame termas like MC. With lame requests to boot - asking for girls with smaller bundas. Who wants a smaller ass in Rio!?! Again, as we already know, the terma girls come in all shapes and sizes. One to please every mans taste.

Moving on -
We all know already - don't change money at the Airport cambio unless you need cab fare. An alternative is to find the guys in the airport and get a better rate without paying commission. Then in the city, check the cambios for their rates and stop by to check Helps rate in the evening.

Have fun and play safe.
Less than 2 weeks and counting. DD

[Black Boots]

Hi Guys

Just returned from a trip to the land of honeys Rio.

My frist trip and maybe more to come, Began my mongering in Rio at the therma Loumo, great girls in place, was spoilt for choice, got to take a nice morena from to the cabin, great performance. Would like to repeat it also tried a low end one from the newpaper ads just a quicke not advisable would not mind the strenous 14hr flight to partake in more pleasures.

My experience with the Sao Paulo garotas was a rip off. Pay upfront and after the first shot scam up avoid of pay after.

A experience of a therma is a must to complete a visit to Rio. Cheers from the land of Sands.

BB

[George90]

IRP

The Interest Rate Parity Theory states that investors will buy the currency which has a higher rate of return (interest rate) and sell the currency that has the lower rate of return. The increase in demand for one currency and the increase in supply of another currency will cause the exchange rate between the two to favor the currency with the higher interest rate.

Euro interest rates have risen relative to US interest rates, so investors are dumping dollars and buying euros. The exchange rate between the dollar and the euro has been and will continue to favor the euro.


DCV

One method of stock valuation is to find the present value (discount) of a firm's earnings, cashflow, or dividends. The rate used to perform the discounting is influenced by the market interest rate. The higher the discount rate the lower the stock value, and vice versa. The Fed lowering the federal funds target causes the stock market to rise.


ET's Theory

What ET observed is correct but the correlation between exchange rates and the stock market is spurious. Higher (or lower) interest rates affect both the stock market and the exchange rate but in opposite directions.

[Exec Talent]

Rio Bob is English not your first language. If so, I can try another for you. Here is the exact reason I posted.

Again, so it does not get lost this time, the point of my post was to let people who are planning a trip to Rio know that the street rate is much higher than the commercial rate and that they should bring cash rather than plan on using their credit or ATM cards.

I have a meeting about one of my investments right now then have to see a woman about a cat, but I certainly will be checking back later. You are more amusing that the late night comedies here.

[Exec Talent]

It's strictly supply vs demand which accounts for the differences in the currency exchange rates. The real is in greater demand vs the dollar. A lot of investment money is pouring into Brasil, whereby there's too many greenbacks being held by foreign central banks and investors. It's simple as that.

So a smart American might be investing in Brazil right now which might mean he has been bringing a lot of US dollars into the country which might explain why he gets an above average exchange rate. Interesting.

Still, check the movement of the DOW against the exchange rate. I NEVER said anything about causation.

[Rastaman]

It's strictly supply vs demand which accounts for the differences in the currency exchange rates. The real is in greater demand vs the dollar. A lot of investment money is pouring into Brasil, whereby there's too many greenbacks being held by foreign central banks and investors. It's simple as that.

[Tavares]

Exec Talent,

We've watched a stockmarket seesaw since July but the usd exchange rate is sliding all the time. I think it has more to do with the fact that the federal reserve has cut interest rates to offset any risk the subprime troubles might spread to other sectors of the economy.

At the same time the brazilian economy is booming and the european central bank has kept the interest rates steady. So what can you expect? if the dollar becomes cheaper compared to both the Real and the Euro, it goes without saying that its exchange rate will suffer, because people prefer higher returns for their savings so they will sell their usd to buy euros or other convertible currencies. Supply and demand...my two cents

[Exec Talent]

Rio Bob, Rio Bob, Rio Bob,
What are we going to do with you? I must find out where you live and pay you a visit. Because, if you are this funny on the internet, you must be a riot in person.

Incidentally, my comment about the exchange rate was for those people actually coming to Rio within the coming weeks unlike you who travel here about once every five years. The whole point of my post was to let people know that the exchange rate they see on the internet is not the street rate. Some people use credit cards and some people use cash. Right now it would be better to bring cash since the cambios are offering a higher rate. Whew, this is getting tiresome.

As I pointed out before, since the US stock market went up, the exchange rate went down. My guy is now offering his best customers only 1.92. I checked at a couple other places and they were offering 1.85 and 1.88. Still better than the commercial rate. Just like the girls, who treat different clients differently, my guy does not give everyone that rate.

BTW, Rio Bob, when I need economic advice I get it from an internationally known economist which I surmise is slightly better than your magic eight ball. My best advice you chose not to quote. Basically anything you suggest doing, do the opposite.

Again, so it does not get lost this time, the point of my post was to let people who are planning a trip to Rio know that the street rate is much higher than the commercial rate and that they should bring cash rather than plan on using their credit or ATM cards.

[RonnyRon]

The rate I got on the dollar today was 1.94 for those making travel plans.

Posted 10/22/07

Care to share?

RR

[Ezinho]

Below more empty statments by ET and never a follow up, I can find many more, it's constant , he's not the mailman cause he never delivers.

Bob, just do what a lot of us have done on here and put him on your Ignore List. This feud between you two is getting beyond ridiculous. Besides, when you quote him, I can see the BS he has posted in the past, which kind of defeats the whole purpose of the Ignore List in the first place!

Oh yeah, the Real hit 1.76 today against the USD, any ISG "economists" want to predict how low it will go by the end of the year?

[Java Man]

Donnie D,
I think your request to find a better exchange rate is now moot. They gave you a better rate in order to bank the Dollar for the day when it would be strong again. From all the previous post on this topic, it looks like that will take many years. Kinda foolish now for someone to give .20 more than the going rate. If you exchange in the thousands, MAYBE they'll give you a few cents more.
BTW, the slide continues. Today's exchange rate is 1.00 USD = 1.77790 BRL.
Yahoo had it at 1.767000BRL.
Someone posted that by December the Dollar would sink to 1.75BRL. Looks like that low mark will get here sooner.

On a side note, anyone noticed that the Dollar is now worth 0.96 Canadian!!

[FLRoadWarrior]

(1.80) is what I have heard from good sources.

(1.91) I doubt it. I could be wrong.

[Pipe Layer99]

The rate I got on the dollar today was 1.94 for those making travel plans.

Can we have some intel on where to get a better exchange rate?

I see you have posted on a few other issues, but not this one.

Thanks, DD