Saturday, October 11, 2008

Where the U.S. dollar hasn’t been hammered yet

Tourism rakes in a substantial chunk of foreign dollars to any nation. Countries like Malaysia is a popular holiday destination because most tourists are from countries with higher value-currencies.

If you are holding greenbacks, the world is really your oyster except for the euro which is top of the heap right now.

If you are from the US, there are five places where you can be sure your money’s worth will stay constant.

Panama has been using the U.S. dollar as its own for more than 100 years.

Ecuador also uses the dollar as its own currency. The land is best known as the home of the Galapagos Islands. A little digression here. Studies have shown that the Galapagos Islands are constantly moving eastwards nearer to the South America landmass and in time to come they will merge but it won't happen tomorrow or next ten years, of course.

It is interesting to note that Ecuador gets its name from the equator passing through, but much of it is not all that hot because of altitude: this is the one spot where you can find snow on the equator-on Volcán Cayambe at nearly 19,000 feet.

Belize's exchange rate hovers around a constant 2:1, i.e., 2 Belize dollars for every 1 American dollar.

Caribbean and Atlantic Islands
There are several Caribbean islands and clusters of islands that peg their currency to the greenback.
- Barbados -- trades at a stable 2 to 1 with the dollar
- Bahamas or Bermuda -- you have the option to use their dollars or your own as the value is the same
- Turks, Caicos and the British Virgin Islands - the exchange rate is stable
- Puerto Rico and U.S. Virgin Islands - the U.S. dollar is the principal currency

Argentina may not be a permanent example as their currency has improved but Argentina's high inflation makes it still a bargain place for the U.S. traveller and Buenos Aires is the best substitute for a visit to a European city.

Buenos Aires


What about the Malaysian Ringgit? Let's not even go there..

12 comments:

  1. I still have USD400... Hmm?

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  2. Bought when they were at 2.5 exchange rate? Fatt tatt lor!! LOL!

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  3. IMO it won't be long before the dollar is no longer the world's reserve currency.

    On the lighter side, here's a report from Tokyo....

    Recent reports indicate the Japanese banking crisis shows no signs of improving. If anything, it's getting worse. Following last week's news that Origami Bank had folded, it was today learned that Sumo Bank has gone belly up. Bonsai Bank plans to cut back some of its branches. Karaoke Bank is up for sale and is going for a song.

    Meanwhile, shares in Kamikaze Bank have nose-dived and 500 jobs at Karate Bank will be chopped. Analysts report that there is something fishy going on at Sushi Bank and staff there fear they may get a raw deal.

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  4. The greenbacks certainly is plunging to a bottomless pit. Let's see if it can survive for a few more days/weeks/months. Ha =)

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  5. PandaB, that's absolutely BRILLIANT!! I LOVE it! LOL!

    Alas! Nothing stays the same forever.

    Tekkaus, scary thought! Sadly, there'd be big ripples.

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  6. At this moment, I'm a bit nervous about our own banks. I think it's safer to keep your money in Maybank or CIMB. At least Government will back them up. Banks like Public Bank, Alliance Bank, StanChart and RHB may be at risk seeing how established banks are collapsing in Europe.

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  7. Oops! I have my money in Citibank. Maybe I should spread out the risk, eh?

    Btw, banks in Malaysia only guarantee RM60,000, so it is wise to spread out the cash among the banks available, 35 I believe? Would anyone take the trouble, I wonder.

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  8. Happysurfer, I hope nations will successfully weather the current financial storm....

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  9. Becos the favorable exchange rate, that's why so many Singaporeans love to shop and eat in Malaysia :p

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  10. MBL, I hope so too. On a personal level, we have been advised to preserve our capital or funds.

    MB, a win-win situation. Please continue to do so. ;)

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  11. Face it: the world is getting fed up with the U.S., and now we're seeing the feedback from that.

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  12. MM, but the exchange rate over here has gone up to the greenback's favour. It went up to 3.5 the last few days.

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