In Russia, many prices are tied to a magical number called the “UE” or “unit
of exchange”. This is often tied to something between the US dollar and the
Euro — depending on the source of the products.
What is amazing is that the US market crashes, with tales of financial
crisis, yet the value of the US currency increases. How does that work?
This affects many Russians personally — as for myself — where the monthly
payments will increase for our new flats when the value of the US currency
increases over a specific exchange rate. As for myself, I’ve lost 2,000 USD
per month in the last 3 months just because of the decline in the value of
the UK currency. These changes are not trivial — for anyone.
While some may whine about the prices of things in Russia having increased
over the past 10 years — Russians are not so pleased considering the
inflation has increased prices of some items not from $50 to $80 (price of
apartments per night as stated on the list here), but TEN TIMES what they
were ten years ago.
So, while you may gloat about having your currency increase in value over
the last several months — (as opposed to the previous 5 years where it
decreased) — think that many prices in the FSU are linked to the value of
foreign currency.
Having lived in the FSU for over 12 years now, I’ve seen a lot of changes –
some very drastic, like the financial crisis of 1996 where many people lost
everything they have as banks folded up — to now, where exchange rates are
so volatile that you don’t know where you stand from month to month.
Considering the value of the US dollar, and how prices have been increasing
everywhere in the world, is there anywhere still left that Americans would
consider ‘cheap’?
When our family was travelling around the US last year, I regularly paid
$100 to $120 per night for rooms at the cheapest and shitiest motels from
New York to South Virginia. We were not picky, but hoped to have a place to
sleep where we could get to the beach at least.
In the US, it is not uncommon to hear people being murdered in the next room
and be afraid to leave the room after dark. (Having served in the Canadian
Armed Forces for 10 years, I’ve noted that there is a rather distinctive
sound to a semi-automatic handgun pumping 10 shots into somebody.) So, why
should you complain when you have to spend $100 per night to stay in a nice
city in the Ukraine or somewhere else where you are completely safe and have
a much nicer room? You expect to spend $50 per night to stay in Europe? GET
REAL.
The world has changed a lot in the past 10 years — I think some people need
to get out of their cheap-ass mode of operation and wake up to the fact that
they can no longer feel the ability to take advantage of other people just
because they have US dollars in their pockets instead of something else.
Yeah - things are tough all over.
I’m a businessman and have to quote prices. I honor my price quotes.
I provide service at my client’s office. If gas goes up or whatever, I don’t
change my price even if I have to drive an hour or two to do my job and
it actually costs me more out-of-pocket. I have more integrity than than to nickel and dime customers. Of course, we only use dollars here in
the US so there isn’t the issue of two currencies.
My original post was about getting price quotes. And the “surprise” of having the prices change upon arrival. I have gotten a price quote for an
apartment in Ukraine and, when I arrived (within a week or so), was told “the dollar went down - you have to pay more”.
Now, the dollar went up, so I have to pay more. The argument, apparently, is based upon the hrivna going down and inflation. Frankly, I am tired of all the whining about the poor conditions in the FSU and that I should be more sympathetic and just open up my wallet and be happy to pay the surprise increase.
The economy in Ukraine or anywhere else is not my fault. OK - through an accident of birth I was born in the US, but still … I understand that
Life can be hard but I am talking about business and the prices of services that are quoted.
My problem with all of this is people not honoring their quotes and taking every opportunity to change(raise) prices already agreed to. So you arrive, tired from traveling, need a shower, whatever, and BOOM - you must pay more for the apartment. I only suggested that anyone traveling to Ukraine get quotes and try to avoid being gouged as exchange rates have been more volatile recently. Good advice, I think, but hey - if you’ve got tons of money and don’t mind these surprises, fine. Don’t worry about it. Don’t even get a quote. Pay more and smile about it - but don’t tell me to get real.
