If the Netherlands Antilles does dissolve in 2007 and Bonaire reports directly to Holland, I assume the Euro and US$ will be the currency of choice. What impact is expected for us American visitors giving the current exchange rate of dollars to Euros?

Does any one have any opinions?

Jim... I'm certainly not trying to be "cute" with this answer, but currency trading is extremely volatile & speculative.. Between you & me, if I knew what the current value of the US $ via-a-vis the Euro would be in 2007 I could retire very very rich.

Do I have an opinion, yes..The Fed Reserve controls short term interest rates in U.S. & I anticipate "the Maestro" (Allen Greenspan) may give us a final push of a 25 basis point (1/4%) hike end of Jan. From there at a maximum I'd anticipate another 25 basis point hike when the new chairman Ben Behnanke takes over & that meeting is scheduled end of March 2006. His decision would no doubt be based upon financial data gleaned between end of Jan & end of March 2006.

As interest rates rise in the US this tends to strengthen the US currency (case in point the dollar's rally vs the Euro last 12 months). By 2007, I do NOT personally anticipate a stronger U.S.currency & would acknowledge the very real probability that it could be weaker. There is also the real possibility US could go into a recession (historically speaking the Fed seems to overdo the monetery tightening) which would weaken the currency more. Ergo the Euro would be worth more. So in essence if this scenario unfolds Bonaire would be more expensive for the US consumer..

But no matter who else ways in on this issue, bear in mind at this point it's all really speculation & no one REALLY knows how the 2 currencies will compare to each other in June 2007. If I had a crystal ball I could be more precise!

Jim, here is a good thread where discussions have taken place in regard to your question. Happy reading!

Cynde

Vince, you were posting while I was searching for the link! Much appreciated

Thank you Cynde. Very helpful. We are in the process of buying land in Sabadeco and this information I will read with great interest.

Jim

to keep the US tourists from going into shock, does anyone think it's possible that the resorts will quote room rates in US$ and honor those rates 6-9 months in advance. (This is standard in Canada, where the currency has been quite volatile vis-a-vis the US$ this, but that's due to the jump in energy prices, as this sector accounts for a large % of Canadian GDP, but that's a different economic discussion...)

How can any owner make a decision if nothing is known ? Some have it already now in Euros, others only in US $ .
If anythink changes, it would be by mid next year (2007) ... just lets wait and see .... everything else is just speculation and of no use to anybody

Sit tight everyone and don't panic....I'm dusting off and polishing my magic crystal ball. As soon as I get the answer I'll be glad to post it here so you can all be guided accordingly..

I didn't mean to ask a controversial question, nor did I expect a definitive answer. I was simply looking for opinions. Thanks to everyone for your input, this helps.

As I am about to purchase a lot in Bonaire I wish I had a crystal ball as well. I'll simply make as an informed decision as I can and monitor the change in events closely as they happen.


Jim

Jim...We're just having some fun..
Between you & me,the conversion should take place in Mid 2007. I think it's always wise to diversify, so in essence you'd be diversifying from $ holdings to Euros by owning property.
I suspect it should be a good move.. After all, where are all these baby boomers going to go when they start to "kick-back"? Best of luck to you.

You got me Vince. I have been coming to Bonaire for 5 years now but I am a newbie to BT (as you can tell). I really do appreciate the opinions. These along with the other info I have collected will help me make the right decision (I hope).

I see you are from Jersey. I have lot's of friends there - Freehold, Sparta, Neptune, etc.

Jim

No problem at all Jim & the personalities on this board are varied and you'll find a wealth of information here. You'll have to sift through what you want to accept & discard.One thing you'll find in common though is an appreciation & love for Bonaire.

Yup, I spent my childhood summers along the "Joiseey" shore & taught myself to dive after first reading a scuba book in the Manasquan Inlet Point Pleasant at the tender age of 13 (diving solo)with perhaps 10 foot visibility on a good day. The crazy things we do in youth!

If Bonaire adopts the Euro, the Bonaire residents will have very little money because the guilder is so much weaker than the Euro. I think that the change will cause an economic collapse in Bonaire. I hope that Bonaire doesn't change its currency.

Perhaps tis is a dumb question but I must ask. I thought all Bonaire currency was printed in the Netherlands and since they are on the Euro they are not minting guilders anymore. Therefore, Bonaire will be forced to go to Euros at some point. I think this conversion is much more complicated than just a quick decision to change or not to change to Euros.

George, I don't know where Bonaire currency is created, but the POSSIBLE change to the Euro is not about the Netherlands having adopted the Euro upon its creation by the EU. It's about the Netherlands Antilles ceasing to exist and Bonaire in July 2007 becoming "a part" of Holland.
As far as we know on Bonaire, no decision about the currency has yet been reached, so this thread is premature.
The one thing which seems certain is that a country which will no longer exist cannot issue currency.