Latin America Dollar Power III takes another look at the strength of the U.S. Dollar in Latin America for those who travel to Latin America (LA) for business or pleasure.
If you´re planning a trip or investigating where you can have a second or permanent home, consider LA.
Dollar power means you can buy more assets, goods, and services in Latin America with fewer dollars, particularly if you negotiate with U.S. cash. It’s an overall good time to travel, visit, and live in a LA country with the “greenback” in your pocket.
In Latin America Dollar Power II, I addressed the opportunity of expats to relocate to Latin American countries, permanently or as a transitional phase.
That opportunity is still present. You can find bargains on plane tickets and prices in LA countries are still attractive when you use U.S. dollars.
Price Negotiating Power
Even Brazil, which is starting to come out of a deep recession, is a good deal. Your dollar will go a long way paying for goods and services.
Ecuador may be one of the best deals in terms of tourism and housing, since it uses U.S. dollars as currency.
This time I agree with some of the comments regarding LA countries like Colombia, Argentina, and Peru.
U.S. Dollar Power in Latin America
U.S. Dollar power in Latin America is still on the rise. Dollar power has been growing since 2013 as Latin American currencies continue to devaluate their currency against the dollar. Much of this is due to the overall slower growth in much of LA and the increased intervention in the economy by each government.
The U.S. Greenback
We know that the Dollar has no intrinsic value, since it’s one of numerous “fiat” currencies based simply upon confidence in its value. The Nixon administration removed it from the gold standard in 1971.
Since the Trump administration managed to work with Congress (albeit a Republican Congress – a miracle in itself) to pass one of the largest tax reforms in the past thirty plus years, the U.S. economy is expected to grow.
If most Americans see their paychecks increase, it seems to be a sure thing. Time will tell.
If good paying middle class wage jobs return, including manufacturing, the economy and Wall Street will speed up. If infrastructure is added to the mix, the dollar will strengthen, and wages will rise, but so will inflation.
Better Exchange Rates
Some Latin countries have better exchange rates than others.
Since writing Latin America Dollar Power II, Venezuela’s economy has imploded, but Argentina has improved a bit with a more business friendly environment.
Although if you speak to many Argentine Porteños, they expect their government not to act in their interest. The Argentine black market still thrives and will continue because of the lack of trust in their institutions.
As to Venezuela, I’ve heard from a reliable source that colleges in Florida are experiencing an uptick of Venezuelan immigrants. Citizens are leaving if they can. The Venezuelan people are scrounging for the necessities.
The exchange rate will continue to favor the Dollar in terms of asset prices in many LA countries which could make the purchase of assets, i.e. real estate, a real value.
Currency devaluation is happening all over, not just in Latin America. So much so that now Bitcoin is offered as an alternative and it’s gaining ground. Bitcoin gets a lot of press these days. Who knows?
Buy More for Less
Whether it’s your first time to visit or you’ve traveled to LA many times, it’s a great time to take advantage of the current “Latin American Dollar Power.”
Who knows, you may find a place you really like and live there for awhile to get the feel of the place.
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If you are living in a Latin American country or in Spain or Portugal we would like to hear from you. Please comment on this article or send us an email at email@example.com.