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July 27[edit]

Where internationally is USD valued highest?[edit]

In which major metro cities in the world is USD valued highest? AKA where will your dollar work harder for you outside the US? — Preceding unsigned comment added by 2602:306:8051:4D60:918B:EBE3:685C:C84C (talk) 17:15, 27 July 2014 (UTC)[reply]

This is going to vary over time and with the basket of goods you want to purchase. A general measure to help evaluate this is the purchasing power parity; a light-hearted version of this is the Big Mac index. --Mark viking (talk) 17:39, 27 July 2014 (UTC)[reply]

This seems like the wrong reference desk section for this question, but I agree with the former Wikipedian. QrTTf7fH (talk) 17:42, 27 July 2014 (UTC).[reply]

I was wondering where the dollar goes further and the refreshingly simple Big Mac Index answers my question completely. Thanks. — Preceding unsigned comment added by 2602:306:8051:4D60:918B:EBE3:685C:C84C (talk) 18:53, 27 July 2014 (UTC)[reply]

The answer might actually be in a place where the US dollar is illegal, but continues to be used for black market transactions. StuRat (talk) 19:48, 27 July 2014 (UTC)[reply]

I'm curious what exchange rate they use. In Argentina, the government sets an official exchange rate for dollars to argentine pesos, but the black market will give you substantially better. I forget exactly how much better, but it might be enough to push Argentina into the lead.--80.109.80.78 (talk) 22:26, 27 July 2014 (UTC)[reply]

I doubt if there's a single black market exchange rate, unless there's one powerful black market leader who can set a universal rate. More likely, the rate is set at each individual transaction, via haggling. StuRat (talk) 12:55, 28 July 2014 (UTC)[reply]

No, they don't haggle. In fact, they openly post their rates. There is some small variation between merchants, but they're all pretty much the same.--80.109.80.78 (talk) 19:20, 28 July 2014 (UTC)[reply]

I would think those engaged in black market sales would use the same "one hand giveth and the other taketh away" strategy as car dealers, where they offer you a great deal on the purchase price of the new car, but you get soaked on the trade-in, finance rate, extended warranty, etc. In this case, they could offer you a great price for the black market item, then you decide to buy, only to find out the exchange rate is bad. Or, conversely, they might offer a great exchange rate to sucker you in, only to find out the purchase price is high. StuRat (talk) 20:15, 28 July 2014 (UTC)[reply]

That would require them to be selling actual items. They're simply selling currency.--80.109.80.78 (talk) 21:42, 28 July 2014 (UTC)[reply]

Well then, they could run the same scam as banks, which say "That's not an absurdly high interest rate we are charging you on your loan, those are fees, and they don't count". So the money changer would offer a good rate, then add a "processing fee" to make up for it, and then some. StuRat (talk) 22:57, 1 August 2014 (UTC)[reply]