Peso-Dollar Arbitrage

[Avispa]

Anyone else heard anything about the dollar situation in the currency market in Colombia? Apparently the country is awash in dollars for various reasons. Therefore the peso is stronger than the official exchange rate.
Anyone working this angle.
Pete?

[Pete E]

... in response to Peso-Dollar Arbitrage, posted by Avispa on Nov 1, 2004

I got 2526 pesos to the dollar a few days ago at an ATM,usually about 99% the official rate.

Pete

[Pete E]

... in response to Peso-Dollar Arbitrage, posted by Avispa on Nov 1, 2004

If you go to the exchange houses the rate is always bad,like 10% worse than normal going either way.
Maybe there is a black market,I haven't heard about it.

Pete

[Ken2]

... in response to Re: Peso-Dollar Arbitrage, posted by Pete E on Nov 2, 2004

Try to exchange your unused pesos in Miami (I usually leave any unused money with my chica)  - thats highway robbery....

[Hoda]

... in response to Peso-Dollar Arbitrage, posted by Avispa on Nov 1, 2004


It's been worse...back in 99, I remember 1.900

[papi]

... in response to Peso-Dollar Arbitrage, posted by Avispa on Nov 1, 2004

last time i was there, not long ago $100K pesos was worth about $400US. A year ago if memory serves me correctly it was worth about $365. not good but things are still cheap over there. i got a haircut not to long ago in Bogota for about $1.60. And you still can get a filet mignon for about $10.00. i know nothing about trading pesos/dollars

[Fuzzyone]

... in response to Peso-Dollar Arbitrage, posted by Avispa on Nov 1, 2004

Yes I heard from my wife the exchange rate is real bad right now...

[Avispa]

... in response to Re: Peso-Dollar Arbitrage, posted by Fuzzyone on Nov 1, 2004

This is what i'm referring to.
Check the web page for El Tiempo newspaper.

The official rate is about 2,575.
But casas de cambio list dollars as costing 2,110.

For example, take $100 here and buy 257,500 pesos. In Colombia use the pesos to buy back $100 for 211,000 at a casa de cambio, equals 46,500 pesos profit.

What am i missing? Is this legal?

[Pete E]

... in response to Re: Re: Peso-Dollar Arbitrage, posted by Avispa on Nov 2, 2004

You probably have the the they will buy dollars for confused with the rate they but pesos for.Right now the official rate is like 2570.You can buy pesos at an ATM for about 2540.So your $100 dollars buys 254000 pesos.If you sell them at an exchange they will probably give you 10% less than you paid for them.They buy 10% under the market,sell 10 % over the market,more or less.

Pete

[papi]

... in response to Re: Re: Peso-Dollar Arbitrage, posted by Avispa on Nov 2, 2004

dont go to Casa de Cabio. you will get a better exchange using your ATM

[soltero]

... in response to Re: Re: Re: Peso-Dollar Arbitrage, posted by papi on Nov 2, 2004

Where do you go here to get Colombian pesos and would you advise that it is best to take little cash money and use the ATM more? Also, would it be better to pay for things in major venues such as restaurants and hotels with a credit or debit card? Do the malls accept credit cards?

[Fuzzyone]

... in response to Questions, posted by soltero on Nov 2, 2004

I used a atm card when I went to Barranquilla I got a real good exchange
rate. But I ran into a bad problem, my ATM card got the mag strip on the back
scrambled.  I got lucky and had family here send me money.

[papi]

... in response to Questions, posted by soltero on Nov 2, 2004

u can use your credit card at most better places and hotels but would recommend the ATM for the best exchange. The greed colored Servibanca are widespread and the best machines in my opinion. i usually take out 300,000 to 400,000 pesos per withdrawal. getting pesos other than through the ATM in Colombia is most likely going to be a less favorable exchange.