Changing Money From euros to dollars

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December 15th, 2016 at 5:12:15 PM permalink
Evenbob
Member since: Oct 24, 2012
Threads: 105
Posts: 10370
Wow, the Euro today is worth $1.04 compared
to the dollar. The highest it's ever been is $1.60
to the dollar. Now is a good time to visit EU,
you'll have the same buying power thanks to
Donald Trump.
If you take a risk, you may lose. If you never take a risk, you will always lose.
December 15th, 2016 at 5:18:26 PM permalink
Aussie
Member since: May 10, 2016
Threads: 2
Posts: 210
My experience almost everywhere I've been in the world is that banks and at the airport is the WORST place to exchange cash. Yes you can get bank accounts that will allow you to withdraw from an overseas ATM at basically the midpoint of the spot rate but over the counter you will get screwed.
December 15th, 2016 at 5:36:05 PM permalink
Evenbob
Member since: Oct 24, 2012
Threads: 105
Posts: 10370
In June the euro was worth $1.13, so it's
really come down. It might go under a
dollar after Trump is actually in office.
If you take a risk, you may lose. If you never take a risk, you will always lose.
December 15th, 2016 at 5:44:24 PM permalink
AZDuffman
Member since: Oct 24, 2012
Threads: 97
Posts: 6020
Quote: Evenbob
In June the euro was worth $1.13, so it's
really come down. It might go under a
dollar after Trump is actually in office.


Fed finally raises rates after the election, no games there, eh? But with them raising it is natural for the USD to rise. Wait until it falls a little below parity then invest in a European mutual fund. Ride the gains for 5 years.
The man who damns money has obtained it dishonorably; the man who respects it has earned it
December 15th, 2016 at 5:53:55 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 661
Posts: 7569
Quote: Evenbob
Money value comparisons are always confusing.
Does this mean I can buy a bottle of name brand
beer in Mexico for 15 times less than I pay here?
I doubt this is true. A $3 beer would be 20 cents.


GDP per capita in pesos and average exchange rate in dollars
2011 133,715 $10,760
2012 134,386 $10,205
2013 136,989 $10,729
2014 144,237 $10,846
2015 150,775 $9,510

But on average you can purchase closer to what you could for US$20,000 in USA with that money. That is the purchasing power parity. The ratio is about 2:1 . That ratio of 15:1 or 20:1 is that ratio of unit of accounting, i.e. dollars to pesos.

There are obviously millions of caveats. The US dollar goes a lot further where you live than it does in Manhattan. So the idea of a single number comparing two countries is a bit of an economist's daydream. A lot depends on government subsidies, because electricity and gasoline are all controlled by the government. But these calculations are done all the time.

Mexico City can be very expensive compared to the rest of the country.

And Heinekin beer and Automobiles and Rolex watches are not going to be different prices in different places. So it is really what bread and flour and local beer costs you.

The chain 100 Monatditos is a Spanish (European ) chain. They have about 350 locations in Spain, 13 locations in Mexico , and 7 in the USA.
But look at the prices for their Mexico City location
http://mexico.100montaditos.com/

A plate of Patatas Brava (a popular potato dish which Spaniards eat instead of french fries)
In Mexico City it is 35 pesos or roughly US$1.75 at current exchange rates
In Miami it is US$4
In Madrid the price is PARA PICAR 2 Euros. The phrase roughly translates as a tiny portion, so it may be half the size of the US portion. If you put that plate on a table in the USA diners will tend to share it. In Europe you will probably get a smaller plate for one person.

It is much more common in Spain to have very small portions and to order lots of dishes. American restaurants consider that less profitable.



Spain advertisement
December 15th, 2016 at 6:58:15 PM permalink
Evenbob
Member since: Oct 24, 2012
Threads: 105
Posts: 10370
Quote:
the purchasing power parity.


100 years ago a footman, like at Downton
Abby, made 22 pounds a year. That is
about $2450 in today's dollars. Because
he paid no room and board and had
no expenses, he could live on $30 a
week. A meal in a diner was 25 cents,
a movie was a nickel. You could a suit
for $15. A bottle of whiskey was 75
cents. You could have the same deal
today, but you could never live in
$30 a week.

The money comparisons make no
reasonable sense. You could by a
Sears home in 1916, a big nice
home, for $600. That's $13,000
in today's money. That will get
you the down payment on a
Sears home today.
If you take a risk, you may lose. If you never take a risk, you will always lose.
December 15th, 2016 at 9:38:25 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 661
Posts: 7569
A pretty telling metric is cars per 1000 people. Very dramatic drop in the Western Hemisphere outside of USA (797 cars) and Canada (662 cars) to Argentina (314 cars).

3 United States 797 2014
12 Canada 662 2014

53 Argentina 314 2007
59 Mexico 275 2010
61 Brazil 249 2011
65 Chile 230 2013
73 Uruguay 200 2009
77 Costa Rica 177 2010
80 Belize 174 2007
93 Colombia 148 2015
95 Venezuela 147 2007
98 Panama 132 2010
111 Honduras 95 2008
113 El Salvador 94 2007
119 Peru 73 2010
121 Ecuador 72 2008
123 Bolivia 70 2007
126 Guatemala 69 2011
130 Nicaragua 54 2009

Caribbean

48 Trinidad and Tobago 353 2007
64 Antigua and Barbuda 230 2009
66 Saint Kitts and Nevis 223
72 Saint Vincent and the Grenadines 204 2008
76 Jamaica 179 2010
83 Saint Lucia 165 2010
85 Dominica 163
100 Dominican Republic 128 2009
103 Grenada 122
115 Bahamas 81 2007
136 Cuba 38 2008
166 Haiti 12
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