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Exchange Rate

Do you think the current exchange rate for a US dollar of 6:1 is based on the relevant economic factors or is it because the government wants to keep our money low enough that external businesses would find hiring here easy, such as in the oil and gas industry?

Rate Exchange

well hmm...thats a tough question. As far as i know, Trinidad is operated under a "dirty float", which means that we have a floating exchange rate but the government occasionally intervenes to change the value of the currency. In my opinion, due to the fairly recent political instability and declining exports,it is very possible that the government has stepped in to encourage foreign investment.....of course im not an expert

Exchange Rate Caribbean / Tobago & Trinidad

I wonder where the US rate would be without the intervention of the government? Any guesses? One thing for sure... I know all the US companies that come here thrive on the 'cheap' labour because of a high exchange rate that benefits them.

Rate Exchange

well...your guess is as good as mine.

but its not only the exchange rate that benefits them in terms of cheap labour.  If you noticed, our minimum wage is much lower than that of the Us or UK (after conversion of course). This is because our cost of living is much lower than theirs.

therefore, the combination of a high exchange rate, along with our relatively low minimum wage, is a recipe for their success!!

Rate Exchange

QUOTE

This is because our cost of living is much lower than theirs.

I do not know if I agree with that. the exchange rate is actually calculated to make a middle class person 'feel' that their money is the same value as a person in the US based on cost of living and salary. Since salaries abroad are higher, it equalizes the cost of living.

Exchange Rate

i am speaking in relative terms. Imagine a foreign company operating in Trinidad. The minimum wage in Trinidad, is, i believe, still $7 per hour. However, the US minimum wage, i believe in yr2000, was $5.15 per hour. This is partially, though not completely, due to the low cost of living in Trinidad relative to the US.

an example of this can be seen in the entertainment industry. A movie at MovieTowne costs $35...but in the US, a movie costs in the range of US$10.
im sure if i do some more research, i could find more evidence. Although basic necessities in US are heavily subsidised, i believe that their cost of living may prove to be higher than that of T&T

of course, as i said before...im no expert...this is just my opinion  :)

Exchange Rate

Let's look at it with your figures...

If I am in the US and work for 10 hours in a day I get US $51.50 or about TT $300.00

In Trinidad I work the same hours and get TT $51.50 or US $8.50

So based on that, in the US I can go to the movies 5 times where as in Trinidad I can go MovieTown 1 time. You can still try and look at it another way where the person goes to 'regular cinema for TT $15.00, he would still be able to go only 3 times.

You can see there is a difference for sure.

Exchange Rate Trinidad & Tobago / Caribbean

i see your point (although your calculation was wrong, since working in Trinidad for 10hrs will give you $70). However, note that when you take a movie costing $15, it works out as almost the same. Also, note that these are newly developed services that could be seen as "luxuries"

instead, consider someone going to "Globe" Cinema. It costs, i believe, $23 or so to see 2 movies. So if my math is right, it works out not so?

(then again, maybe im grasping at straws..lol)....but i see your point