InsideOut Travel—Coping with a Shrinking Dollar Cont.

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Some Asian nations, such as China and Malaysia, trade at an official parity with the US dollar. Others, including India and Thailand, often intervene to keep their dollar exchange rate steady. In addition to that, Vietnam and Thailand are still fighting bad publicity from the Asian Bird Flu epidemic, so they’re laying out the deals to lure visitors.

Therefore, Americans visiting nearly any place in Southeast Asia or the Indian subcontinent will still find their money going a very long way. Hike the Himalayas, kick back on Bali, or visit Angkor Wat at prices that are still dirt cheap.

The writer stretching a buck in Halong Bay. Tim Leffel.

The Best Deals Around

Closer to the United States is the Caribbean. Although this area of the world isn’t exactly known for bargains, at least it’s not getting worse. Everything is already priced for Americans anyway, so rates there are holding steady.

The big exception to the upside is the Dominican Republic. Troubles in Haiti have spilled over to the D.R.’s currency, which is down by 60 percent since January. So, anything that can be bargained for in local terms will be a steal, including adventure tours booked on the spot.

Finally, most countries in Central and South America are tied closely to the dollar, either as a trading partner or a currency peg.

Panama and Ecuador actually use the US dollar as their currency, while countries such as Peru and Belize hold rates in a narrow band. The only significant Latin American decline in the dollar has been in Chile.

So where are the best deals in Latin America right now? Look to Mexico, Honduras, or Argentina. The Mexican peso is down 20 percent against the dollar from two years ago while the Honduran currency is down 11 percent.

Argentina has had a host of problems and its currency is worth one-third of what it was in at the beginning of 2002. These countries are still all far cheaper than Western Europe and it makes them some of the best values on the planet right now.

Before you leave, check out this online currency converter: www.fxtop.com

Tim Leffel is author of The World's Cheapest Destinations: 21 Countries Where Your Dollars are Worth a Fortune. For more information visit www.worldscheapestdestinations.com or buy the book at www.booklocker.com.

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CONTINUED JUST THE FACTS

Coping with a Shrinking Travel Dollar

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