Exchange Rate and Prices?

Question

I'm going to the Domincican Republic next week and I was wondering about prices there. The current exchange rate is $1.00 = 34.6215 DOP. Does this mean that I'll have lots of money compared to here or that inexpensive items will be hundreds of DOPs?

I'll be spending part of my trip near resorts and part in more rural areas. If that affects anything.

Answer 1

The exchange rate and the purchasing parity are not the same. The exchange rate is just that. You get XX dollars in country for XX dollars from your own country. That is the exchange rate.

Purchasing Power Parity is all about what you get with those newly exchange dollars. So the question becomes, how many Dominican dollars buys a BigMac? And how does that compare to how many US Dollars it takes to buy a BigMac. But sorry. I don't see the Dom. Repub. on the Big Mac List:

http://www.oanda.com/products/bigmac/big...