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 Post subject: Re: Exchanging Money 101
PostPosted: Mon May 04, 2015 2:29 pm 
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PVD, do yopu mean CRDollar by Advia?


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 Post subject: Re: Exchanging Money 101
PostPosted: Mon May 04, 2015 3:09 pm 
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Puravidatransport wrote:
BashfulDwarf wrote:
if you are talking about this page:
http://indicadoreseconomicos.bccr.fi.cr/indicadoreseconomicos/Cuadros/frmConsultaTCVentanilla.aspx
then the last time it was updated by the Banco de Costa Rica was April 1st.


Think you might be having a cache issue there BD...I just opened up that link and it was updated today. It matches (and looks identical) to the app I use on my Iphone called CR$ by Advia which has always been accurate. Check the app to decide which bank to change money at a couple of times a week...

Correct on the page being updated, but the entries from each bank are old. Look at the column "Last Updated" (Última Actualización)

Banco de Costa Rica........527,00...........537,00............10,00...........01/04/2015 05:30 p.m.

This could be their current rate, but I just wanted to point out the old updatestamp. Bank rates change on the minute, and I have been in a branch watching the rate change as I waited to convert.

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 Post subject: Re: Exchanging Money 101
PostPosted: Mon May 04, 2015 4:00 pm 
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Hi, Folks! My first post here! I did not intend to just stumble in and start spewing information, but I stumbled across this topic by accident. I don't know much about Costa Rica, but I do know quite a bit about currency and currency exchange, as it is directly related to my business.

I don't mean to step on any toes here, but the information in this topic is quite a bit off the mark.

I get the feeling that a lot of the members on this site don't quite understand what Forex is, or what XE.com is, or what the various exchange rates mean. I'll put this in layman's terms for you. I'm not trying to be condescending here... just stating the facts. My business does a lot of currency exchange. I know that I am new here, so you don't have to believe me, but I would recommend that you do.


Does Costa Rica alter its exchange rate because of how many U.S. Dollars it has on hand? NO! That would be a preposterous strategy that would very quickly render the Colón worthless. Of course, many financiers in Costa Rica would probably tell you that that is how the Costa Rican exchange rate strategy works, as that would suit their economic strategy. Any market maker -- whether in currency, commodity, or stock exchange -- depends upon the gullible believing that kind of B.S., to further their own ends.

The exchange rate in Costa Rica is set thusly... The Costa Rican Colón is tied to the U.S. Dollar via a system known as the "Crawling Peg." Without getting into a long classroom-style discussion, this basically means that the Colón is protected from wild swings regarding its value in reference to the U.S. Dollar. The National banks are also allowed to operate at their discretion within the range set by the Crawling Peg, which means that the banks may not always have the exact same exchange rate. That's why we call it "Bank Rate," which is usually pretty close to "Market Rate." The leeway that the banks are given by the Costa Rican government results in what I would call a "Crawling Peg... with addendums."

Now, what is Forex? Everyone loves to quote Forex. Forex is Nothing. Forex, quite literally, is the "Foreign Exchange" for currency. There is no "Forex corporation." If I told you, "Hey, I found this information on 'The Internet' "... would you consider that information trustworthy? Forex is just like the Internet. It is a system that is used by various companies, but it is not a company itself.

Well, quite similarly, the same can be said of finding a currency exchange rate on Forex. One very accurate piece of information that has been stated in this thread is that Costa Rica doesn't really care what "Forex" has to say about the value of the Colón. The Colón is worth what the Costa Rican economy and the Costa Rican banks SAY that it is worth, and if you don't like it, then TOO BAD for you. Of course, that attitude and position only works as long as the international currency market backs it up.


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 Post subject: Re: Exchanging Money 101
PostPosted: Mon May 04, 2015 4:35 pm 
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BashfulDwarf wrote:
Correct on the page being updated, but the entries from each bank are old.

I noticed that as well but since I think they've changed rates since the last day posted, I would say they just aren't bothering to change the update date/time. Many banks on that list are current on their date but many are not, however, the exchange rates all seem to be up to date.

costareeker wrote:
PVD, do yopu mean CRDollar by Advia?

Yes, that is the app I mentioned. Listed as CR$ on my phone...sorry for any confusion. It is always accurate in my experiences.

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Last edited by Puravidatransport on Mon May 04, 2015 7:52 pm, edited 1 time in total.

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 Post subject: Re: Exchanging Money 101
PostPosted: Mon May 04, 2015 4:38 pm 
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In a little addendum to that post -- my first post -- I also offer this tidbit of information.

Costa Rica is a cash-poor economy that really, truly (not quite desperately) needs an influx of paper within the next several months. Costa Rica has done well with attracting international businesses to itself, but that only brings companies that earn money on paper, with tax breaks.

What Costa Rica really needs is CASH!

Unfortunately for Costa Rica, it has sold the Credit Card far too well. Standing behind a Tico in line at a McDonald's usually involves watching that Tico swipe his credit card to purchase a Double Cheeseburger Combo. It's great for him, and great for many businesses, but it doesn't bring Greenbacks into Costa Rica.

That brings us to the subject of the "Debit Card" -- an instrument that Costa Rica took very little time to extrapolate from the credit card business. Now, Ticos are typing in PINs at the McDonald's, without having the tiniest clue what that action represents.

Pop Quiz #1 -- Q: What's the difference between a credit card and debit card? A: Night and Day.

Pop Quiz #2 -- Q: What does the VISA logo on your VISA debit card mean? A: Not what you THINK it means.

Pop Quiz #3 -- Q: How many cards (debit and credit) did VISA issue last year, in the entire world? A: ZERO! VISA, MasterCard, American Express, and the other credit card brands DO NOT issue credit cards. (Actually, American Express is a different story, but not relevant to this discussion) This is the central point in the misunderstanding about the VISA brand and cards that bear the VISA logo.

So your debit card has a VISA logo on it. Good for you. What does that mean? Well, it means that VISA told your bank, "If you give us $2 (or whatever) per cardholder, we'll let you issue cards with the VISA logo on them." What does that VISA logo mean? It means that you can use your card at any location that accepts cards with a pretty little VISA logo on them -- and that is ALL. Chances are, your debit card isn't even processed over the VISA network. You've probably been asked at least once, by a merchant, "Credit or Debit?" When you answer "Debit," the merchant asks you to type in your PIN, right? Every time that you type in your PIN, you are basically saying, "I DO NOT want VISA's protection for this transaction."


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 Post subject: Re: Exchanging Money 101
PostPosted: Mon May 04, 2015 6:38 pm 
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BangBang57 wrote:
BashfulDwarf wrote:
BangBang57 wrote:
The most accurate, most complete, and most up to date source I have found is:

bccr,fi. tipo de cambio anunciado in ventanilla

This is used as economic indication, and is not updated regularly.

The Forex reflects global demand, and has no parallel to the internal exchange rates. Remember that Forex is a futures gamble on foreign currencies. So it's nice to glance and see if the number is going up or down, but it's just a ballpark figure for currency purchases at local banks.

In the end it doesn't matter what numbers you use, or websites you watch. You will only be offered a rate that the bank you visit is willing to give. It's a 'take it or leave it' thing.


Sorry my friend but THIS IS UPDATED DAILY, some times several times a day. If there is a change it will be reflected within minutes! If no change, it often will not reflect an update. It is exactly what the different banks and institutions are giving at the moment in Costa Rica. Which, if you are in CR and wanting to change money, is all that is important! As I have stated more than once, they to a small extent take into consideration the international rate, but the National Bank is much more concerned with what is going on in CR and what their needs are at the moment than what the rest of the world says it should be or what the "official international rate" is. They set the rate to satisfy their needs at the moment. I have seen it go up when all other indicators were going down and vice versa!!

The important thing is it is what one can expect to get at all the different institutions AT THE MOMENT IN COSTA RICA REGARDLESS OF WHAT THE INTERNATIONAL MARKET SAYS IT SHOULD BE!!!!! Only problem is, I have checked to see what the rate is and by the time I get to the bank it has changed. Hell I have had it change while waiting in line in the Bank!!


Bashful, reread the sentence in red!!!! I use BCR and I check the rate several times a week. From april 1 till today their rate did not change thus no change in the date (till today)!! It had been 527/537 for more than 30 days. They use to change the date to reflect the rate every morning during the work week. A couple of months ago they (BCR) for some reason (or maybe no reason--it is CR) stopped changing the date unless the rate changed.

And yes one day a few years ago when the rate was very unstable and fluctuating frequently I checked one morning just before leaving for the bank By the time I got to the bank it was down 2 points. buy the time I got to a window (maybe 15 minutes tops) it was down another 3 points. That day the rate changed 3 times in less than 2 hours. I was changing $500 so it cost me approximately $5.

This was about 5 years ago when the rate was tied strickly to the dollar and the economy was going wild in the USA. Outtatime21 the one statement in your post that I totally agree with ("I don't know much about Costa Rica"). What you said was totally true up until Costa Rica changed their laws about 5 years. Maybe you should go back and read those new laws on how they determine the in country exchange rate. Yes as I said it is loosely connected to the international currency exchange, but the rate is more determined by the government and the power players need to acquire or sell dollars. The in country rate DOES NOT often go up or down as the international rate does!!

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 Post subject: Re: Exchanging Money 101
PostPosted: Mon May 04, 2015 6:51 pm 
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Outtatime21 the one statement in your post that I totally agree with ("I don't know much about Costa Rica"). What you said was totally true up until Costa Rica changed their laws about 5 years. Maybe you should go back and read those new laws on how they determine the in country exchange rate. Yes as I said it is loosely connected to the international currency exchange, but the rate is more determined by the government and the power players need to acquire or sell dollars. The in country rate DOES NOT often go up or down as the international rate does!![/quote]

BangBang57...

Thank you for your reply.

I am very familiar with the exchange rate protocol and the laws regarding currency valuation in Costa Rica. It is my job to be aware of those laws and practices, in countries all over the world.

No... I don't know much about Costa Rica...

Yes... I am intimately familiar with the laws, practices, and regulations regarding the valuation of the Costa Rica Colón on the open, bank, restricted, nominal, and general markets.

-----------

I am not trying to offend you, but you clearly have no accurate knowledge of how currency works in the domestic, local, or international environment.

I'll address some of these issues now.

> The in country rate DOES NOT often go up or down as the international rate does!!

There is no such thing as an "International Rate." The Colón is a free currency whose exchange rate is controlled by a "modified crawling peg." What the Colón trades for on the open market is not technically relevant to the exchange rate that you get at BCR, Banco Popular, etc.


> the rate is more determined by the government and the power players need to acquire or sell dollars

In fact, Costa Rica's "modified crawling peg" is specifically designed to release the national banks from the control of the government -- exactly the opposite of what you are saying.


Also, if Costa Rica were to base its exchange rate upon its supply of U.S. Dollars, the market would instantly pick up on that, and declare the Colón "Worthless."


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 Post subject: Re: Exchanging Money 101
PostPosted: Mon May 04, 2015 7:56 pm 
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outtatime21 wrote:
The Colón is a free currency whose exchange rate is controlled by a "modified crawling peg." What the Colón trades for on the open market is not technically relevant to the exchange rate that you get at BCR, Banco Popular, etc.

I think that is exactly what BangBang has been saying.


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 Post subject: Re: Exchanging Money 101
PostPosted: Mon May 04, 2015 8:02 pm 
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GoodDayJohn wrote:
outtatime21 wrote:
The Colón is a free currency whose exchange rate is controlled by a "modified crawling peg." What the Colón trades for on the open market is not technically relevant to the exchange rate that you get at BCR, Banco Popular, etc.

I think that is exactly what BangBang has been saying.



I understand. I humbly apologize if I did not make that point clear.

The point that I was attempting to make is that the "market rate" is irrelevant to the exchange rate of any currency. That includes the U.S. Dollar, the Euro, and the U.K. pound. No government official in the USA or the United Kingdom cares what the U.S. Dollar or the U.K. pound is currently trading for on the "Forex" "Internet" currency exchange, for the purpose of setting the exchange rate of their nation's currency.

This is my business. I deal with this kind of stuff on a day to day basis. On any given day, somebody will ask me what the "Forex" rate is for the U.S. Dollar or some other currency. My standard answer is, "Who Is Forex? Oh...! You mean the open market!"


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 Post subject: Re: Exchanging Money 101
PostPosted: Mon May 04, 2015 8:41 pm 
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GoodDayJohn wrote:
outtatime21 wrote:
The Colón is a free currency whose exchange rate is controlled by a "modified crawling peg." What the Colón trades for on the open market is not technically relevant to the exchange rate that you get at BCR, Banco Popular, etc.

I think that is exactly what BangBang has been saying.


if you want to get more technical about it, I could explain how the "crawling peg" and the "modified crawling peg" system in Costa Rica works.

I think that BangBang57 and many other people believe that a few guys in Costa Rica wake up every morning and say, "Well... We don't have a whole lot of U.S. Dollars right now, so let's move the exchange rate this way."

It does not work that way. Nobody in Costa Rica says, "We don't have enough U.S. Dollars... so let's devalue the Colón a little bit, so we can get some more Dollars in here." Ummm... No...

That's what we call "Issuing a 'No Confidence' call" on your currency, which basically makes your currency worthless.

The point of the "modified crawling peg" is twofold...

1) It frees the National Banks from a rigid government exchange rate. The banks are free to operate at their discretion, albeit within a fairly narrow range.

2) It mitigates huge "mood swings" in the value of the Colón. The Colón might have a huge technical drop in value in 2 or 3 days, and then slowly recover over a period of 4 weeks or so. However, the MCP will make the Colón go down, slowly, for 2 or 3 weeks, and then go up, slowly, for another 2 or 3 weeks. Meanwhile, all of the Yahoos will be be saying, 'I don't understand why the "International" rate on the Colón is going up, but the rate at my bank is still going down.'


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 Post subject: Re: Exchanging Money 101
PostPosted: Mon May 04, 2015 9:06 pm 
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Since this is my business (finance), I'll throw a few more ideas out there for you guys to consider.

----------

I'm standing in a "Best Buy, Magnolia Home Theatre" center, getting ready to drop about $7000 on a home theater system. It was a good deal, and for reasons that are my own, I was going to purchase the system with my VISA debit card.

The salesman said, "Oh... It's a debit card. Well... type your PIN in here."

I told him, "Oh... No, No, No! You run that like a Credit Card Transaction. There will be no PIN."

He said, "But the credit card transaction costs us a lot of money."

I said, "Your agreement with VISA Requires you to sell me the system for the advertised amount, regardless of the method of payment, and I want this transaction run as a credit transaction."

I later explained to the guy that that gave me VISA's full purchase protection, including Double warranty period protection. Once he understood, he was actually giving me props for being savvy about the whole thing. I just told him, "I'm not really that smart. My family has a retail business, too. This stuff has come up in the past, so I've just seen it all before."


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 Post subject: Re: Exchanging Money 101
PostPosted: Mon May 04, 2015 9:30 pm 
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outtatime21 wrote:
Since this is my business (finance), I'll throw a few more ideas out there for you guys to consider.

----------

I'm standing in a "Best Buy, Magnolia Home Theatre" center, getting ready to drop about $7000 on a home theater system. It was a good deal, and for reasons that are my own, I was going to purchase the system with my VISA debit card.

The salesman said, "Oh... It's a debit card. Well... type your PIN in here."

I told him, "Oh... No, No, No! You run that like a Credit Card Transaction. There will be no PIN."

He said, "But the credit card transaction costs us a lot of money."

I said, "Your agreement with VISA Requires you to sell me the system for the advertised amount, regardless of the method of payment, and I want this transaction run as a credit transaction."

I later explained to the guy that that gave me VISA's full purchase protection, including Double warranty period protection. Once he understood, he was actually giving me props for being savvy about the whole thing. I just told him, "I'm not really that smart. My family has a retail business, too. This stuff has come up in the past, so I've just seen it all before."


All of my credit cards require a pin number entry.

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 Post subject: Re: Exchanging Money 101
PostPosted: Mon May 04, 2015 9:47 pm 
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One of the better posts in awhile, savvy on the world financial scene (scheme) , keep
up, so how was that grass fed beef ? Keep on don't worry about toes 8) 8) 8)
Regards, 911 Driver

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 Post subject: Re: Exchanging Money 101
PostPosted: Mon May 04, 2015 9:55 pm 
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Devo wrote:
All of my credit cards require a pin number entry.



I heard that some of the credit card issuers were going to start doing that, using the sales pitch of "enhanced security." I would like to hear some more about it, if that is true.

Are you sure that your cards are credit cards? Which brand licenses your cards? Do your PIN-based transactions run as "cash advances?" Which network/interchange runs your transactions? Which company wrote your card-holder agreement?

I am genuinely curious. This is my job, and I would like more information.


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 Post subject: Re: Exchanging Money 101
PostPosted: Mon May 04, 2015 10:01 pm 
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911 Driver wrote:
One of the better posts in awhile, savvy on the world financial scene (scheme) , keep
up, so how was that grass fed beef ? Keep on don't worry about toes 8) 8) 8)
Regards, 911 Driver


I actually ran into "Don Fernando" one night, at one of the stores. Actually, I don't know if that is really the guy's name, but he was The HEAD CHEESE of Don Fernando... or so he said.

He talked about raising the cattle in Costa Rica and how he was very meticulous about free-range cattle farming and making sure that the cattle ate the right grass, lived in the right climate, and lived a stress-free life, which apparently makes better beef.

The beef was Epic, and that teenager running the grill that night was either a genius or just got incredibly lucky. I tend to think the former. A butter knife would have done the job that night.


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