moisheh
North America
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The Peso is currently at about 12.1 and has been hovering in this area since yesterday. Very good for tourists but horible for Mexico.
Moisheh
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topazguns
Gardnerville, Topaz Lake, Nevada/San Felipe,Baja
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moisheh, Invest in white out. The Mexicans are buying it by the gallon to change their restaurant menus.LOL
George & Ann
Boone the wonder dog (Wonder if he'll stay home or chase rabbits)
Topaz Lake, NV/San Felipe, Baja Norte
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with a 04 Dodge Diesel 4x4
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rocmoc
Tucson, AZ/Mexico
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We will have to wait to see if it trickle down to the local level. Probably will run into the diff only when you pull pesos at the ATM or use a non-Mexican credit card. The locals won't see of feel anything. My last pull a week ago was an improvement to my favor. Best exchange rate all summer.
rocmoc n AZ/Mexico
rocmoc n AZ/Mexico
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qtla9111
Monterrey, Mexico
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It is pyschological. If the U.S. had casa de cambios around them and banks posting the value of the dollar against the Euro, the effect would be the same except the headlines would say, "Dollar Tanks".
Give it time, it will recover.
On edit, some companies will have layoffs. On the other hand this will help free up the export market which has been in the bottoms for quite some time.
* This post was
edited 10/07/08 10:07am by qtla9111 *
1998 Nissan Pathfinder
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Living and Boondocking Mexico
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Jack_Diane_Freedom
Lindsay Ont, and Gulf Coast Florida
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Actually it is not horrible for Mexico. So long as the economy is dependent upon exports it is a good thing and now Mexican exports are cheaper. We have had this same opportunity in Canada for years with a low CDN dollar making our manufactured and exported goods cheaper. Over the past few months we have lost this advantage and our manufacturing industsries are hurting.
This is not a bad thing for Mexico. A devaluation of the American dollar is bad for America because so much is imported and so costs US citizens more dollars.
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moisheh
North America
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Jack- Diane( Isnt that a Melenkamp song):
In any other country your statement might be correct but Mexico is a huge importer. The agriculture industry depends on farm chemicals and fertilizers that either are made in the USA or licensed to a Mexican mfr. Either way their costs go up. Same for the pork and chicken industry. When the Peso dropped by 50 % all the smaller chicken producers went bankrupt. The beef industry relies on American stock. Mexicans are the worst businessmen in he world. They do well due to low cost wages. Other than the huge industries, busineses draw out all the cash. Not enough reinvestment. When times get tough they go bankrupt. Right now the maquilas are probably doing poorly. They do benefit slightly from a week peso. The wages are usually based on the US$. The week dollar causes inflation in a country where the poor are already having tough times. Even the middle class suffer. Most imports are priced in US$ .
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moisheh
North America
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Here is a Bloomberg on the subject:
Mexico Will Revise Growth, Crude Forecasts in Budget (Update1)
By Adriana Lopez Caraveo and Jens Erik Gould
Oct. 7 (Bloomberg) -- Mexico's finance ministry will revise economic forecasts in its 2009 budget proposal so they reflect the impact of the U.S. credit crisis, Deputy Finance Minister Jose Antonio Meade Kuribrena said.
The government will change forecasts for economic growth, inflation, interest rates and the assumed export price for oil before Oct. 20, Meade told lawmakers today in Mexico City.
``It will have to be revised,'' said Meade, who is deputy minister for revenue. ``All the variables are changing and that's being taken into account to see what is the best position we can take.''
Central bank Governor Guillermo Ortiz said today that the finance ministry is preparing an economic package to soften the impact of the global credit crunch, even as he said Mexico is well-positioned to face the crisis.
Mexican lawmakers have called on the government to revise the 2009 budget proposal it submitted to Congress last month. The plan called for a spending increase of 5.7 percent, compared with a 9.8 percent boost approved for 2008. The proposal assumed economic growth of 3 percent, oil exports would sell for $80.30 a barrel, the currency would average 10.60 pesos per dollar, and inflation would slow to 3.8 percent.
Too Volatile
Jorge Estefan Chidiac, head of the finance committee in the lower house of Congress, said today it was good that the ministry hasn't yet sent new forecasts because markets are still too volatile to settle on new figures.
Still, he said, it's clear the economy won't grow 3 percent next year, the peso will be weaker than 10.6 per dollar, and Mexican oil exports won't fetch $80 a barrel.
Mexicans have fewer job opportunities than last year and domestic companies are finding it harder to obtain credit because of the U.S. crisis, Ortiz said today. Still, Mexico is better positioned to confront a global crisis than in the past, he said.
Finance Minister Agustin Carstens has said that while the financial system is well-capitalized, the U.S. lending crunch will affect the country's growth.
Mexico's peso touched a record low today of 12.3669, the weakest since 1993 when the government introduced a new peso equivalent to 1,000 old pesos. The currency dropped 4.4 percent to 12.3454 per dollar at 4:26 p.m. New York time. The Mexican mix of export crude fell 0.6 percent to $78.03 a barrel at 4:02 p.m. New York time.
To contact the reporters on this story: Adriana Lopez Caraveo in Mexico City at adrianalopez@bloomberg.net; Jens Erik Gould in Mexico City at jgould9@bloomberg.net
Last Updated: October 7, 2008 16:37 EDT
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mexbungalows
las peñas, michoacan, mexico
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Huh? They dropped three zeros from el effectivo. It was the Christmas Surprise of 22 December 1994 that sent the peso tumbling. Take a look at at Mexican newspapers right before the crash and you will see that Mexico was claiming its currency reserves to be 41.5 billion pesos. When the United States catches a cold, Mexico gets pneumonia. My eyebrows arched when I read the information above.
This may end up being a long and bitter recession for the USA and its effects on Mexico will be worse yet.
As I write this many billions of pesos are departing Mexico for a safer haven. Our T-Bills have been a historic safe harbor for fleeing pesos.
My heart goes out to poor Mexicans.
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qtla9111
Monterrey, Mexico
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mexbungalows wrote:
As I write this many billions of pesos are departing Mexico for a safer haven. Our T-Bills have been a historic safe harbor for fleeing pesos.
My heart goes out to poor Mexicans.
This same thing has been happening to the dollar and Americans. People are bailing out and buying Euros. In a global economy, a nation's money goes where it gets the most.
You can overlay the charts from the last year for the dollar vs the euro and the peso vs the dollar. They are almost identical. The dollar is now at a five year low.
My heart goes out to poor Americans too!
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silversand
Montreal
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Quote:Give it time, it will recover.
...I remember the Mexican peso crisis during 1994 (I was there); the Mexican peso (or, NP): I can't ever recall (in my lifetime) it doing well against the US dollar? Ever.
It fluctuates very slightly, but just keeps devaluating against the US dollar...
Has anyone got the Peso-to-US dollar price graphs for the last 50 years to compare?
Cheers,
Silver-
Silver
2004 Chevy Silverado 2500HD 4x4 6.0L Ext/LB Tow Package 4L80E Michelin AT2s| Outfitter Caribou
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