BajaNomad

Peso devaluation over the years?

bajagrouper - 10-4-2013 at 02:38 PM

I wonder if anyone out there has a chart showing how many times the peso has been devalued since 1970. how many times it has doubled and redoubled ?

DavidE - 10-4-2013 at 03:30 PM

1970 it was supposed to be 12.49 to the dollar. In 1990 I remember it being close to 3,100 to the dollar. In 1899 the peso was at parity, one peso one dollar. So today, the peso is "worth" something like 13,000 to 1 against the dollar using the original peso formula. Of course Mexico has made what (?) fourteen sets of currency obsolete and worthless since its inception. All but the gold and silver. Except for Continental Currencies, everything in the USA since 1794 remains legal tender redeemable at any bank. I have a fondness for 1804 silver dollars, and 1895 Silver dollar proofs, shoot I'll even take a 1943 copper penny.

20 peso, 50 and 100 peso NEW PESO coins were obsoleted because they contained genuine SILVER in the center. Yeah this means the NEWEST coins, the ones with the brass.

bajagrouper - 10-4-2013 at 03:50 PM

Thanks, but I trying to find out how many times it doubled and redoubled, like form 12.50 to 25.00 or 25 to 50 etc.all the way to 3400 then down to 3.40 overnight...

Buy the way Mexico is the only country that has silver coins in Circulation, when I am ever in a bank or casa de cambio I ask for 100 peso coins since the center contains 1/2 oz. silver. Just picked up a Jalisco State one at a Banorte in Ensenada a couple weeks ago......

DavidE - 10-4-2013 at 04:28 PM

[img]http://www.tradingeconomics.com/charts/mexico-currency.png?s=usdmxn&d1=19720101&d2=20131231[/img]

The data you are asking for is difficult to discern. Back when, when the peso came under heavy pressure Banco de Mexico CLOSED THE BANKS. Sometimes for days at a time. So even though charts suggested radical declines the public never got to see them. The peso SUPPOSEDLY dropped from 12.49 to 26.something, overnight. But the banks closed until it had "regained" to 22 something. The bank I went to in Acapulco conveniently "had no pesos" when I went to exchange dollars to pesos which was a farce. On 23 December 1994 the casa de cambio in San Ysidro was offering a paltry 3.25 pesos to the dollar.

If I had to guess I would say the peso "devalued 50% fewer than four times since 1972. But In the People's Guide to Mexico Carl Franz tells a story about seeing a gag article in a Mexican newspaper "PESO DEVALUES 100%".

Getting definitive information about exact tipo de cambios from Banco de Mexico would be about as easy to do as funding out the color of Guillermo Oritz's mistress' underwear.

Good luck in your search.

If this was still in circulation it would be worth$10 US

durrelllrobert - 10-4-2013 at 04:31 PM

Quote:
Originally posted by DavidE
1970 it was supposed to be 12.49 to the dollar. In 1990 I remember it being close to 3,100 to the dollar. In 1899 the peso was at parity, one peso one dollar. So today, the peso is "worth" something like 13,000 to 1 against the dollar using the original peso formula. Of course Mexico has made what (?) fourteen sets of currency obsolete and worthless since its inception. All but the gold and silver. Except for Continental Currencies, everything in the USA since 1794 remains legal tender redeemable at any bank. I have a fondness for 1804 silver dollars, and 1895 Silver dollar proofs, shoot I'll even take a 1943 copper penny.

20 peso, 50 and 100 peso NEW PESO coins were obsoleted because they contained genuine SILVER in the center. Yeah this means the NEWEST coins, the ones with the brass.


DENNIS - 10-4-2013 at 04:41 PM

Quote:
Originally posted by bajagrouper
Thanks, but I trying to find out how many times it doubled and redoubled, like form 12.50 to 25.00 or 25 to 50 etc.all the way to 3400 then down to 3.40 overnight...




That was the "Old Peso"...the eight cent wonder, after they released it to the free market to encourage foreign investment.
It rapidly showed it's worth by becoming publicly confusing.
When it settled in at a price, it was changed to today's "Nuevo Peso"........dropping three zeros, and quickly found it's real world value.




.

[Edited on 10-4-2013 by DENNIS]

Riom - 10-4-2013 at 10:02 PM

Quote:
Originally posted by bajagrouper
I wonder if anyone out there has a chart showing how many times the peso has been devalued since 1970. how many times it has doubled and redoubled ?


There's an attempt to chart it at:
http://www.tradingeconomics.com/mexico/currency

Select a narrow range of years to see more detail. The earlier data seems to be just random days, not very detailed. This is because the peso was fixed at 12.50 to the US dollar from 1954 to 1976 (devaluing along with the dollar, three times).

When looking at the figures before 1993, multiply by 1000 (so an exchange rate of 0.10 means 100 old pesos to the dollar).

For much more detail on all the various exchange rate changes since 1954, see
http://intl.econ.cuhk.edu.hk/exchange_rate_regime/index.php?... (scroll down past the list of countries, to the history then the timeline).

The Bank of Mexico daily data only goes back to late 1991:
http://www.banxico.org.mx/portal-mercado-cambiario/foreign-e... (click on "more information" next to the first exchange rate).

Rob

DavidE - 10-5-2013 at 10:18 AM

You might want to reformulate your statement that a 100,000 peso note would be worth ten dollars today (if it were still legal Mexican tender which it isn't - it is worthless).

Figuratively speaking a MN$ 100,000 peso note "would be" worth $7.66 US dollars.

April Fool's Day, 1985, I exchanged dollars for pesos at a tipo de cambio of 472 to 1

One dollar's worth of pesos then would be worth fifteen cents today.

When someone blows the whistle where all the drug money is being laundered, woooweee.

[Edited on 10-5-2013 by DavidE]

bajagrouper - 10-5-2013 at 12:46 PM

Quote:
Originally posted by DavidE
You might want to reformulate your statement that a 100,000 peso note would be worth ten dollars today (if it were still legal Mexican tender which it isn't - it is worthless).

Figuratively speaking a MN$ 100,000 peso note "would be" worth $7.66 US dollars.

April Fool's Day, 1985, I exchanged dollars for pesos at a tipo de cambio of 472 to 1

One dollar's worth of pesos then would be worth fifteen cents today.

When someone blows the whistle where all the drug money is being laundered, woooweee.

[Edited on 10-5-2013 by DavidE]


I have never seen a Mexican 100,000 Peso note, maybe a 10,000 ( pictured) being the highest I have seen...

woody with a view - 10-5-2013 at 01:17 PM

Quote:
Originally posted by DavidE
shoot I'll even take a 1943 copper penny.


weren't those pennies ZINC? i have a few!

Here! THIS OTTER DO YA :)

DavidE - 10-5-2013 at 01:20 PM

WALK THROUGH A GROCERY STORE...

DavidE - 10-5-2013 at 01:23 PM

...and the price labels looked like telephone numbers

DavidE - 10-5-2013 at 01:29 PM

Got a genuine solid copper 1943 penny?

Shucks, I'll trade ya for a real zinc plated steel 1943 penny! I'll even make it a BRILLIANT UNCIRCULATED 1943 steel penny, out of, er, friendship!

Copper was used for the war effort, silver was used for the Manhattan Project.

Why is it Canada uses the Loonie, and Mexico uses the 10 peso coin, and yet gringos cannot stand to carry a coin dollar? Explain to me that, wudja, wudja?