villadelfin
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Pesos and elections
Folks are saying the peso will fall after the election and I'm wondering what feeds their crystal ball? Is it time for offshore accounts?
I'm just a poor boy, I need no sympathy,
Because I'm easy come, easy go, Little high, little low,
Any way the wind blows doesn't really matter to me, to me.
-Queen
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MrBillM
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Bad News
It has been the tradition for the outgoing President to do the dirty work at the last minute so that the incoming President doesn't have to deal with
it, but why should the Peso fall ? Isn't it floating against the dollar now ?
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Bruce R Leech
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| Quote: | Originally posted by MrBillM
It has been the tradition for the outgoing President to do the dirty work at the last minute so that the incoming President doesn't have to deal with
it, but why should the Peso fall ? Isn't it floating against the dollar now ? |
it doesn't have much to do with the strength of the Peso or the economy of Mexico or even the world economy. it has a lot to do with what games they
want to play to put more money in there pocket
Bruce R Leech
Ensenada
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vandenberg
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| Quote: | | it doesn't have much to do with the strength of the Peso or the economy of Mexico or even the world economy. it has a lot to do with what games they
want to play to put more money in there pocket |
Bruce, Bruce, Bruce,
And you being an inmigrado showing that kind of trust in your elected officials.
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villadelfin
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| Quote: |
Experience. Research the timing of the last few devaluations
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This is me researching the timing. How many elections have been legitimate prior to 2000.
One or two elections can hardly predict the future?
offshore=cayman islands
[Edited on 5-13-2006 by villadelfin]
[Edited on 5-13-2006 by villadelfin]
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comitan
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I think those days are over(I hope) I liquidated my pesos the last election (Fox) because the peso always devalued with the new president but it did
not happen.
Strive For The Ideal, But Deal With What\'s Real.
Every day is a new day, better than the day before.(from some song)
Lord, Keep your arm around my shoulder and your hand over my mouth.
“The sincere pursuit of truth requires you to entertain the possibility that everything you believe to be true may in fact be false”
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villadelfin
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Why not keep the $$ in the US?
I live here now and have no plans to go back to the US except when abs. necessary
but more important, an American friend of mine here in town just had his US accounts seized by the US government for non payment of taxes. Even though
he says he did file and did pay. Unfortunately, his lawyer and accountant are both on vacation right now. Hmmn...
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bajalou
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| Quote: | Originally posted by villadelfin
Why not keep the $$ in the US? |
Probably for the same reason most Mexican bussiness men around here keep them there.
No Bad Days
\"Never argue with an idiot. People watching may not be able to tell the difference\"
\"The trouble with doing nothing is - how do I know when I\'m done?\"
Nomad Baja Interactive map
And in the San Felipe area - check out Valle Chico area |
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MrBillM
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Peso Otra Vez
What reading I've done today seems to confirm that the Mexican Peso is floating freely against the Dollar on World Money Markets. Given that, it
would seem unlikely that the outgoing President would attempt to establish any Artificial value for the Peso. The previous devaluations were done at
times that the Peso was pegged by the Mexican Government.
On another subject, keeping your money in a dollar account at a Mexican bank would not likely be any kind of hedge against a dramatic currency
catastrophe. It wasn't the last time. My neighbors had substantial holdings in dollar accounts and they were paid off in Pesos at the devalued rate.
Fortunately for them, they had kept those accounts for so many years and drawn usury interest rates that they still came out ahead. They didn't feel
that way, though.
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Oso
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| Quote: | Originally posted by villadelfin
Why not keep the $$ in the US?
an American friend of mine here in town just had his US accounts seized by the US government for non payment of taxes. |
I think you just answered your own question.
All my childhood I wanted to be older. Now I\'m older and this chitn sucks.
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villadelfin
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Clarification.
Originally posted by villadelfin
Why not keep the $$ in the US?
an American friend of mine here in town just had his US accounts seized by the US government for non payment of taxes.
The above question, "why not keep the $$ in the US?" was a quote of the question asked by Lencho in this thread. It was not a question posed by me. I
was merely responding to his question.
This is what Lencho wrote:
Quote:
offshore=cayman islands
Oh, you ARE serious. Pardon my ignorance, why there rather than the U.S.?
So, in order for this all to make sense,
Please scroll up and pick up the thread from there. I am so  so sorry to have
confused anyone by not using quotes. Stupid me who reads the thread from the beginning.
[Edited on 5-14-2006 by villadelfin]
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sanfelipebob
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pesos dollars
You will never come out behind leaving your money in dollars.
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bajalou
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Early 90's I think
No Bad Days
\"Never argue with an idiot. People watching may not be able to tell the difference\"
\"The trouble with doing nothing is - how do I know when I\'m done?\"
Nomad Baja Interactive map
And in the San Felipe area - check out Valle Chico area |
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TMW
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In 1989 I bought $1000 worth of pasos and became a millionaire. rate was around 3000 to 1.
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bajalou
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A friend who had $80,00 depostied and got about $20,000. I arrived here in 95 and she was very unhappy. Also several others who still refuse to put
ANY money in the Mexican banks
No Bad Days
\"Never argue with an idiot. People watching may not be able to tell the difference\"
\"The trouble with doing nothing is - how do I know when I\'m done?\"
Nomad Baja Interactive map
And in the San Felipe area - check out Valle Chico area |
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MrBillM
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Dollar Accounts
There have been (4) major peso devaluations. 1976, 1982, 1986 and 1994.
I can't say for a fact whether it was the 1982 or 1986 crash that resulted in the difficulties I was describing, but I'm inclined to think it was 1986
since it seems like we'd been residing in Percebu for some time prior to the event and we didn't lease our lot until May 1982. When the crash came,
my next-door neighbors and best friends had substantial holdings in "Dollar" accounts. Those were NOT honored and the accounts were paid off in
Pesos. They claimed to have lost about $20K each as a result. We talked to other residents who had the same experience. There were numerous
articles in the news media at the time, including a lengthy article in the Los Angeles Times. No doubt there is information available on the net if
one wishes to do the research.
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bajalou
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I think your date is probably right MrBillM. It was prior to and not associated with the issuance of the "New Pesos".
No Bad Days
\"Never argue with an idiot. People watching may not be able to tell the difference\"
\"The trouble with doing nothing is - how do I know when I\'m done?\"
Nomad Baja Interactive map
And in the San Felipe area - check out Valle Chico area |
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MrBillM
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1982
Good to know.
One thing I did find ayer was an article describing the Mexican Federal Law which allowed the government to accomplish this. The article is from
1999. I'm unsure whether the law exists unchanged at present.
---------------------------------------------------------------------------------------
Originally published in: Law and Business Review of the Americas
Summer 1999
Introduction
Mexico has an interesting monetary law that can have ruinous results
for the unwary who enter into commercial transactions in that country.
The instability of the Mexican peso presents the economic side of the
dilemma, whereas Mexico's monetary law creates the legal side of the
dilemma. Together they provide the proverbial final nail in the coffin to
the unwary. The cyclical ups and downs of Mexican markets, including
the historical and present rapid devaluations of its peso make this article
particularly timely for those who have entered into or plan to enter into
almost any type of commercial transaction in Mexico. Unfortunately,
contracting parties usually give little thought to the consequences and
terms of repayment obligations under a particular contract entered into
in Mexico and to the effect of legal provisions such as the Fourth and
Ninth Transitory Article 5 of the Monetary Law of Mexico, 6 other than
providing that payment will be made at a particular time, using a particular
currency, and at a fixed or variable rate or amount.
Statement of the Problem
The general rule under Mexico's Monetary Law states that all payment
obligations acquired within or outside of Mexico which are payable within
Mexico, shall be paid in Mexican pesos at the exchange rate applicable
at the place in, and date on which payment is made7. It is the exception
to this general rule that can have ruinous results.
The problem exists in some specific transactions under Mexico's monetary
law which may legally enable a debtor party to a contract to refund, repay,
or reimburse pesos to the other contractual party at the rate of exchange
existing at the time the amounts were originally received, and not at the
rate of exchange when the amounts are reimbursed. This is the result, even
if the contract expressly states that such refund or reimbursement will be
paid in dollars (or other non-peso currency) at the rate of exchange existing
at the time of the reimbursement.
This article discusses the exception to the general rule, where the result is
that the creditor party can receive an economic windfall (if the peso devalues)
since payment can legally be made in pesos at the rate of exchange that exists
at the time the debtor party originally received the pesos, notwithstanding written
terms of a contract to the contrary. The differing results under the general rule and
the exception (which is the discussion of this article) are due to a timing difference
the debtor party can legally use to determine the currency rate of exchange
applicable to the transaction.
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bajalou
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And at 11:39 this morning, peso/dollar is quoted at 11.112 to one.
No Bad Days
\"Never argue with an idiot. People watching may not be able to tell the difference\"
\"The trouble with doing nothing is - how do I know when I\'m done?\"
Nomad Baja Interactive map
And in the San Felipe area - check out Valle Chico area |
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