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Local Items: Official Currency change announcement
Bonaire Talk: Local Items: Archives: Archives - 2008: Official Currency change announcement
Top of pagePrevious messageNext messageBottom of page Link to this message  By Carole B. (Supreme BonaireTalker - Post #6940) on Saturday, September 13, 2008 - 2:32 pm:     Edit PostPrint Post

Hi, everyone!

I thought I would post this news item from the Bonaire Insider for all to read. cb

http://www.bonaireinsider.com/index.php/bonaireinsider/bonaire_opts_for_us_dollar_as_new_official_currency/

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By num air (New BonaireTalk Poster - Post #1) on Saturday, September 13, 2008 - 2:58 pm:     Edit PostPrint Post

so this is at least a year away right?

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Susan Davis, InfoBonaire, Bon. Insider (Experienced BonaireTalker - Post #249) on Saturday, September 13, 2008 - 4:48 pm:     Edit PostPrint Post

Ria, in the official announcement by the Island Government, no date was yet set for the effective transition to the dollar, and, instead, the release stressed that the conversion would have to take place over time to avoid economic difficulties.

FYI, although official status change will not take place this December 15 as originally planned, there are departments of the government which will begin a conversion process to a new status with ties to Holland as early as this December.

In my opinion, it is possible that the currency conversion can probably begin to take place any time after that, but as we hear or learn more, we'll be sure to post it on the Insider.

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Barbara "CB" Gibson* (Extraordinary BonaireTalker - Post #2115) on Saturday, September 13, 2008 - 5:15 pm:     Edit PostPrint Post

Bummer. If it's good for Bonaire, and it's what Bonaire wants, okey dokey, but I like knowing I'm in a different country, fumbling with coins at the Cultimara. Besides, the money's pretty.

On the other hand, this means I must go back to spend my florins before they expire....

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Trevor Hibdige, Lac Bay Villa (Experienced BonaireTalker - Post #115) on Saturday, September 13, 2008 - 5:15 pm:     Edit PostPrint Post

For a while it will be possible to pay in Dollars but you will receive your change in NAFs.

Oops - no change there then.....

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Glen Reem (Supreme BonaireTalker - Post #2845) on Saturday, September 13, 2008 - 9:12 pm:     Edit PostPrint Post

What am I missing???

The Bonaire currency has been pegged to the dollar from time immemorial so isn't this effectively 'no change', only a formal continuation of the present into Bonaire's new relationship with Holland?

A question: the linked text by Susan Davis says: 'The commission’s decision is that Bonaire’s new currency must be the U.S. Dollar.' Should that not be that the Bonaire currency will continue to be pegged to the dollar? I doubt that Bonaire and Saba can actually use the U.S. dollar as their own currency. :–)

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Mickey McCarthy (Experienced BonaireTalker - Post #623) on Saturday, September 13, 2008 - 9:57 pm:     Edit PostPrint Post

Glen
There are already several countries that use US currency. Ecuador for one, although the coins are different but with US denominations. Palau also uses US currency. I think there are more, but I'm not sure.
Mick

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Barbara "CB" Gibson* (Extraordinary BonaireTalker - Post #2118) on Saturday, September 13, 2008 - 11:17 pm:     Edit PostPrint Post

Marshall Islands, at least some of the Federated States of Micronesia. Does Belize? I can't remember...

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Vince DePietro (Bellevue Bonaire Condo ) (Extraordinary BonaireTalker - Post #1668) on Sunday, September 14, 2008 - 6:40 am:     Edit PostPrint Post

I believe this is an excellent choice!

Bonaire will have the stability of the US dollar (yes I realize that over the past several years it has decreased vs the EURO & other currencies but suspect this is because Bernanke at the Fed has twin mandates; business growth & inflation whereas Jean Claude Trichet for the Euro zone only has a singular mandate; inflation) and Bonaire will benefit from the purchasing power of the Euro (used by approx 50% of her visitors)v dollar.
That's just my 2 cents worth.

Bottom line; great choice.

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Susan Taft (Experienced BonaireTalker - Post #907) on Sunday, September 14, 2008 - 6:43 am:     Edit PostPrint Post

Belize has their own currency, the Belizean dollar. The exchange rate is exactly two to one which makes it easy to use for those of us challenged by conversion rates! British Virgin Islands use the US dollar as their currency if I remember correctly.

Glen, I believe the issue is not if the Bonaire currency will continue to be "pegged" to the US dollar. There has been much discussion about what the new currency will be once the status change happens ... for awhile it has been a question of US dollar or the EURO.

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By michael gaynor (Supreme BonaireTalker - Post #3383) on Sunday, September 14, 2008 - 8:47 am:     Edit PostPrint Post

We will certainly have lots more one dollar coins than we do now..I get them from Ecudor

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Lorraine Meadows (Extraordinary BonaireTalker - Post #1238) on Sunday, September 14, 2008 - 8:57 am:     Edit PostPrint Post

Is it like everything changes, but stays the same, kinda of thing ?
Glad to hear it.

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Ann Johnson, Massage Hut-Sorobon Beach (BonaireTalker - Post #49) on Sunday, September 14, 2008 - 1:01 pm:     Edit PostPrint Post

I too think it's a great decision for the island. We can't use the guilder going forward because the dissolution of the Antilles means it may no longer be a viable currency. Countries who wish to use the euro have to comply with strict economic standards that Bonaire's economy simply cannot meet. Although we are becoming a municipality of Holland, we still don't meet those standards and are in a unique postion as an island with tourists and residents from many countries. Being that I am a former foreign currency markets employee, I may have a strong opinion!

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By michael gaynor (Supreme BonaireTalker - Post #3384) on Monday, September 15, 2008 - 8:35 am:     Edit PostPrint Post

It really will have some minor impact but almost all the residents are used to the dollar already and have been for more than 20 years! It will entail a lot of book keeping changes and computer entry work, payrolls, taxes, etc. etc. I really don't anticipate much difficulty. Prices in many places are already posted in both currency.

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Harrie Cox (Experienced BonaireTalker - Post #492) on Wednesday, September 24, 2008 - 10:41 am:     Edit PostPrint Post

Strange,

most messages come from American people, and they are happy with that Dollar on Bonaire. (because it is so easy with the conversion? or too lazy to actually count with the always-changing conversion rate?)

\Here is the opinion of a "Dutchee".
A sad and bad decision. We miss the choice for a really strong currency, and will be attached to the weak US$. Local people will get paid in dollars, while much of the materials come from Europe. Your salary will get lower and lower (in Euro's) without you having the possibility to do anything to it. The Dutch Government will take over the care for the finances, don't think they will pay in a fixed dollar-rate, they are attached to the Euro.
The US-economy is weak, always been based on too much borrowing, for which the whole world pays the debt at this very moment. Why the hell connect you to that weak US-currency. There are about as many European tourists here as US-tourists, so that is also not a good reason. Some countries (also in the caribbean) are using the Euro (St. Maarten, St.Barth, I think Guadeloupe, and more) and that works perfect.
Since the dutch government will be the biggest provider of money, at least the coming years, it would have been very wise to take the Euro as currency. But wisdom is not one of the best qualities of the current Government.

A sad and bad decision........

Harrie

Remark: The spell-checker of BT doesn't recognise the word "Euro", this is a very bad sign!!!!! America is not very open to other cultures/people/countries/currencies?

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By michael gaynor (Supreme BonaireTalker - Post #3397) on Wednesday, September 24, 2008 - 11:04 am:     Edit PostPrint Post

Harrie Do I detect some cultural and national bias? You do realize that our economy is based in tourism and the "Dutchees" who visit love the dollar since they change Euros for dollar. As the French Business people in ST. Martin what they would prefer! I think that if you ask the local community, they will not want the Euro!

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By David Johnson (Experienced BonaireTalker - Post #458) on Wednesday, September 24, 2008 - 11:56 am:     Edit PostPrint Post

Harrie --

Wow -- we are now going to attribute the views of "america" to what words a spell check recognizes? (And how should I characterize the view of all europeans?)

Yes, I am from the USA and I prefer the dollar being used in Bonaire -- and it has nothing to do with math or familiar looking money. It has to do both with economics and perceptions of value.

We both agree that, at present, the Euro is a much stronger currency than the dollar. Whether the spread will be more or less in five years neither of us can say with any degree of confidence. I also suspect we both agree that NA guilders have effectively been a proxy for the dollar. I do not agree that the "whole world" pays the debt of the USA. It is true that individuals and entities from around the world are financing the debt -- put they are not paying it. In fact, they are being paid interest on the debt instruments they purchased. (Big difference: when you get a loan from a bank, you are paying the debt. The bank is financing the loan. Where does the bank get the money? By accepting deposits from other individuals. And I suspect we both agree about the current level of borrowing.)

From the perspective of the EU tourist: Any country based on the dollar seems like it is on sale. It offers EU tourists (who are most often paid in Euros) the chance to leverage their strong currency. (It also has a percepton issue -- you just take the price that it says in dollars and knock almost one-third to get to Euros!)

From the perspective of the USA tourist: The prices are in dollars as they have effectively been for decades. There is effectively no change.

From the perspective of many Antilleans: Tourism is an important source of income. Keeping it going is a good thing. Yes, things imported from NL will float in costs with the Euro (as they have already been doing). But everyone gets paid less (whether in dollars or Euros) if one element of the local economy catches a cold.

In terms of financial support from NL: I am not sure I see that matters much. If they appropriate in Euros (something you agree they are likely to do), that covers any changes. It is entirely self correcting!

All of that said, I am not sure it matters (other than perception) that much. Real Estate prices have shot up on Bonaire when viewed from the perspective of the guilder and the dollar). They have not shot up nearly as much when the math is done with the Euro. When currencies can be readily traded on the open market, and items can be imported from almost every corner of the globe, everything has a way of adjusting.

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By I. van den Berg (BonaireTalker - Post #13) on Wednesday, September 24, 2008 - 11:58 am:     Edit PostPrint Post

If you read this forum people tend to go for the dollar if you read dutch forums people tend to go for the euro. I wish the people who have the responsibility for this choice a lot of wisdom.

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Harrie Cox (Experienced BonaireTalker - Post #493) on Wednesday, September 24, 2008 - 12:00 pm:     Edit PostPrint Post

Michael,

This is what you say, you have US-roots.
I speak with lots of locals, I have got other information.
And I spoke to people on St. Maarten and Saint-Martin.(NOT St. Martin) too. As usual, some are happy, and some are unhappy with it.

I think the government has hung their ears too much to the Tourist Industry, and forgot about the locals and the practical problems ocuring when the dutch government takes over.

Remember: this IS an American=based board, with mostly american users....

No cultural or national bias at all, I am Bonairian. If you say I am controversial, OK. But don't get personal!


Harrie

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Harrie Cox (Experienced BonaireTalker - Post #494) on Wednesday, September 24, 2008 - 12:17 pm:     Edit PostPrint Post

With the remark about the whole world paying the debts for the problems in the US I didn't mean really paying the intrest. No, the european stockmarkets went down because of all the sh*t made in the US by the financial institutes, not because the companies in Europe were in bad shape.

When you live in Bonaire, get your salary in Bonaire, pay your bills in Euro's and get your income in Euro's there would at least for the locals be no problem with exchange rates. As you said, it is self-adjusting. Only the visitors coming from US-currency based countries would have to deal with currency-fluctuations. The visitors from Euro-based countries would not.
Exactly the same with your ideal situation, but then the other way around, only the Euro is safer for the locals.

Harrie

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By David Johnson (Experienced BonaireTalker - Post #459) on Wednesday, September 24, 2008 - 12:48 pm:     Edit PostPrint Post

You are correct that a downturn in one global market tends to cause issues in others. Why? If the down economy in country x drives down consumer spending in that country, and that company imports products, any "foreign" company selling to that market suffers. Many of those companies are asian, european, etc.

And there are two other angles as well: Many european based companies have been buying USA based companies (again, the strength of the euro vs the dollar). As a result, many european based companies now have more significant exposure to the flux in the USA stock markets. While based in the EU, the production, distribution and sales of those products takes place in the USA within the context of the local economy.

Also imagine two identical USA based companies. One gets bought by a EU based company and the other does not. What happens to the market value of the EU based company when the market value of the USA based twin drops?

Saying, "Only the visitors coming from US-currency based countries would have to deal with currency-fluctuations" is only partway true. Tourists from the USA would adapt by, in some cases, choosing other locations. (Note: In most cases, average USA tourists have shorter stays but spend much more per day than average EU tourists. Is this similar in Bonaire?)

While I agree that the current government seems to have a tourism at all costs approach (I think different types of tourism have different economic and non-economic impacts and some tourism is better than others), there is no doubt in my mind that a 25% drop in USA to Bonaire tourism would cause a giant economic dislocation.

Right now, Euro based tourists see the island as being "on-sale". I suspect they would also begin to select bargain destinations elsewhere (hey, we can do three weeks in Belize for what ten days cost in Bonaire!). I know -- I loved touring Canada when the exchange rate was almost $1.50 CDN to $1 USA.

Finally, paying bills in Euros does not mean that all of the price inputs would be in Euros. I see plenty of stuff on Bonaire from Aruba, Vz, USA, etc. Still an international economy.

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Vince DePietro (Bellevue Bonaire Condo ) (Extraordinary BonaireTalker - Post #1680) on Wednesday, September 24, 2008 - 1:15 pm:     Edit PostPrint Post

David..I think your postings make a lot of sense & I'm completely in sync with your arguments.

For those on the other side of the argument, right now the US is going through a real bad crisis. Everyone has a theory on who's to blame & the causes (as I do also but that's beyond the scope of this posting). But we will no doubt work our way through it. Some call it muddling through.

The economic cycle in Europe lags that of the US so in another year or two no one can definitively predict the value of the Euro v Dollar. If you could, you'd be a multi billionaire.

I have stated that our Federal reserves twin mandates makes it a much more difficult task for them as opposed to the singular mandate for the Euro zone. It's a lot easier to just focus on inflation without also having to focus on the growth of the economy as does our Fed.

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Kevin W. Williams (Bella Vista Estates) (Experienced BonaireTalker - Post #606) on Wednesday, September 24, 2008 - 9:32 pm:     Edit PostPrint Post

It's really a matter of the basic strategy of "buy low, sell high", Harrie. Right now, essentially my entire net worth is in guilders. Maybe 10% in dollars, none in euros. If the government switches us to euros, they are basically forcing me to buy euros at a time when I get the worst deal in history. I don't like to buy high.

I think that most Bonaireans are like me, and have all of their assets in guilders as well. The reason many Dutch favor the transition to euro is because their wealth is in euros: they tend to keep just enough in guilders to get buy on their day to day stuff. For them, it's a matter of convenience to stick with euros. For those us based in guilders, its a matter of survival not to switch.

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Ted Johnson (BonaireTalker - Post #21) on Thursday, September 25, 2008 - 6:16 am:     Edit PostPrint Post

Here's a partial list of countries that officially use the US $

Federated States of Micronesia,
BVI,
Timor,
Palau,
Marshall Islands,
Ecuador,
El Salvador,
Panama and
Turks & Caicos Is.

TED

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Ann Phelan - www.bonairecaribbean.com (Supreme BonaireTalker - Post #3342) on Thursday, September 25, 2008 - 6:57 am:     Edit PostPrint Post

I was in St. Martin in Aug. and some places are offering 1=1 if you pay in cash. Business and restaurant owners say they are suffering due to the weak USD (with US consumers who visit SXM). It was very $$ to spend any amount of time on St. Martin but I prefer that side vs Sint Maarten for personal reasons. We just forgot the money issue and paid.

I am happy we will use the USD for many reasons. It makes good sense on many levels. Everyone will not be happy, mostly consumers who possess and spend Euros.

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Harrie Cox (Experienced BonaireTalker - Post #496) on Thursday, September 25, 2008 - 10:59 am:     Edit PostPrint Post

Once again,

yes the US$ makes good sense to US-visitors, and probably also to people who make their money in tourist-industry (most of the reactions on this board) but not for most European visitors, and surely not for the locals. Bonaire will be related (attached) to the Netherlands/Europe in the future, and it would have been sooo wise to attach to the Euro, but it seems that most of the Americans cannot think from the other direction, or don't want to listen to the opposite arguments.

Just as Iris said, the american-oriented boards tend to the US$, the European/dutch boards tend to the Euro. The locals you don't see on any of those boards.

But this discussion is very useless, the government in all her wisdom has chosen for the US$, and I think that will not be changed anymore.

Sad.....


Harrie

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Kevin W. Williams (Bella Vista Estates) (Experienced BonaireTalker - Post #607) on Thursday, September 25, 2008 - 11:16 am:     Edit PostPrint Post

You have never stated a reason that the dollar is bad for the locals, Harrie. I'm a local, and switching to the Euro would be very bad for me. If they did it, I would convert all my accounts to dollars before it went into effect. I don't want to exchange guilders for euros at a time when the exchange rate is so bad. If I wanted euros, I'd wait until the dollar was strong against the euro, and then switch. I don't want the government to force me to do the exchange.

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Harrie Cox (Experienced BonaireTalker - Post #497) on Thursday, September 25, 2008 - 11:51 am:     Edit PostPrint Post

Kevin, I also consider myself as a local, but not making my money in touristindustry.
The reasons why Euro would be better then Dollar for locals was explained before. And just ask the locals, I mean REAL locals.
If you want to wait till the dollar is strong against the Euro I wish you good luck, perhaps your kids will get that possibility?
An Euro was worth US$ 0,85 six years ago. Now it is some US$ 1,50. Was even more some time ago. (+75%)
But that is my opinion, if I really knew, I would not have invested part of my money in US$-industry at all, and I will be in near future rich enough to live on one of the islands on the coast of Dubai, or so. (for example).

So see what the future brings for the Dollar. Is also important for my future, now.

Good luck, for both of us.

Harrie

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By michael gaynor (Supreme BonaireTalker - Post #3400) on Thursday, September 25, 2008 - 7:39 pm:     Edit PostPrint Post

One word GOLD

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Harrie Cox (Experienced BonaireTalker - Post #499) on Thursday, September 25, 2008 - 7:43 pm:     Edit PostPrint Post

What about black gold?

Harrie?

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By michael gaynor (Supreme BonaireTalker - Post #3403) on Friday, September 26, 2008 - 9:33 am:     Edit PostPrint Post

Want to go in on an oil rig venture..I really think oil is doomed as a commodity into the next century...Gold never seems to get "used up"

 


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