US Dollar Buying Power: The US Dollar Appreciates In Various Countries During 2011
I always shop for a value wherever I go. It doesn’t matter if I’m buying food, a car, clothing, or a TV. I love deals. I always want a better price…
I’m not talking about being cheap. There’s a difference. My wife would be happy to tell you all about how I can spend with the best of them.
And I can’t deny it. I love my toys. Golf clubs in particular…
I’d bet my bottom dollar most of you are the same way. I’m pretty sure when you’re out shopping, you too compare prices on virtually everything. You’re always looking for a “deal”.
But deals are getting tougher to come by these days (unless you’re a buyer in real estate)…
One area where deals are really scarce is in international travel. The weak US Dollar is making it more expensive than ever to travel abroad.
Right now, travel to places like Europe, England, or Australia costs and arm and a leg…
If you’ve traveled abroad recently, you’ve felt it first-hand. If not, take my word… I’ve traveled a number of times outside the US on both business and pleasure.
Back in late 2008, I could fly to Italy and buy a cup of cappuccino for a just €1. That would have cost me about $1.25… But now, the same €1 cappuccino costs me closer to $1.45… That’s more than a 15% increase in just three years.
What’s going on?
Simply put, the Euro has increased sharply in value versus the US Dollar.
As you can see, the Euro is much higher today than it was in late 2008. Even with the financial woes in countries like Greece, Spain, Portugal, and Italy, the Euro is still more valuable than the greenback.
And the exchange rate is just as bad in many other countries. For example, the Mexican Peso is 5.7% more expensive than it was just last year. Ouch!
But if you know this secret, you can save a ton of money on your next trip abroad.
The secret is this…
Next time you plan on going overseas, check exchange rates before you pick your destination.
You see, not every country in the world has seen their currency rise against the US Dollar. There are still countries out there struggling with their own economic issues. And these countries are not recovering as fast as the US.
Here’s where we’ll find our deals…
Belize
Belize is fast becoming a top exotic destination. And in 2011, we’ve seen the US Dollar appreciate 1.3% so far versus the Belize dollar. The country’s economic growth came to a halt in 2009. And it only grew 1.5% in 2010. The recovery has been hampered by the global economic slowdown and natural disasters.
Rwanda
Rwanda is one of the best places in the world to go on Safari! And since the beginning of 2011, the US Dollar has appreciated by 1.4% versus the Rwanda Franc. You see, Rwanda’s economy is burdened by heavy debt and high unemployment. Tourism and mineral exports are their primary income sources. And 2009-2010 has seen a major mineral export slowdown due to the global economic crisis. As a habitually poor country, Rwanda will be naturally slower to recover than other major countries.
Aruba
Aruba is a classic Caribbean island paradise. And the US Dollar is flat in 2011 against the Aruba Florin. This may be due to two major points. One, Aruba is primarily a tourist economy. And two, Aruba’s economy is dependent on the United States. As our economy goes, so does theirs. Over 1.5 million tourists per year visit Aruba with 75% of travel coming from the US.
These are just a few of the places I’ve found where you can stretch your dollars. You’d be surprised how many countries we can travel to and get more for our money…
In fact, there are 17 countries in Africa alone where the US Dollar has appreciated. Asia has nine countries, including Thailand, where the greenback is stronger today. And three countries in Central and South America offer a better rate on the US Dollar so far this year.
Considering how poorly the US Dollar has performed, we can still get away to a number of exciting locales. And don’t forget all the US Caribbean territories… Puerto Rico and the US Virgin Islands are also great destinations. These places use US Dollars with no exchange rate needed!
I love getting a deal. So I’ll be traveling to a destination this year where my US Dollars still have some buying power.
A European vacation may have to wait. But a trip to Belize or Aruba is not out of the question. Even an African safari might be in the cards this year.
A little thinking outside the box can pay off nicely when you choose your 2011 vacation destination.
Category: Currency Trading
