Santiago
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Peso value and the Mexican economy vis-a-vis other Latin American economies
Short article on the state of the Mexican economy and Peso value here.
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AKgringo
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It is interesting that this article referrers to the exchange rate as "an historic low", and the talking head on last night's news called it a "record
low". Apparently, research is not part of journalism anymore.
When I crossed the border heading south in late February of 1986, it was 160 pesos to the dollar. By the time I crossed north two months later, it
was around 350 to the dollar!
When I needed pesos, there were people outside the bank bidding for my greenbacks, so we did even better than posted rates. Anything we could put on
plastic wound up being discounted by the time the funds were transferred.
Everything was on sale, I could not have stayed home for what that trip cost!
[Edited on 1-27-2016 by AKgringo]
If you are not living on the edge, you are taking up too much space!
"Could do better if he tried!" Report card comments from most of my grade school teachers. Sadly, still true!
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El Jefe
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Yes, it could be worse, but still tough on the regular folks. I will probably have to start paying my gardener more pesos to keep it fair. But that's
ok since I get a lot more for the buck at the ATM.
And 1986, I remember that well. A bunch of us were going to make a little surf trip half way down to some unnamed spot in our cars until I just
happened to check air fares. We all got tickets to Cabo for $66 dollars round trip. I think it was on Mexicana back in the day. Free beer to boot!
Giant surf and some heavy summer storm conditions met us. Slept under a little palapa on a fiberglass lounge while the storm surge washed through
Brisa del Mar trailer park. What an adventure. And yes, I did get a few good ones taking off well outside of the rock. Memories!
No b-tchin\' in the Baja.
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SFandH
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Quote: Originally posted by AKgringo  | It is interesting that this article referrers to the exchange rate as "an historic low", and the talking head on last night's news called it a "record
low". Apparently, research is not part of journalism anymore.
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Perhaps they are referring to the value of the peso since 1993 when Mexico issued new currency, stripping off 3 zeros, turning 1000 pesos into 1 peso.
The new currency was called the Nuevo Peso. After all the old pesos were out of circulation the term "Nuevo" was dropped.
See: https://en.wikipedia.org/wiki/Mexican_peso
[Edited on 1-27-2016 by SFandH]
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AKgringo
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Prior to the mid 80s peso crash, my dad was pretty happy with the interest rate he was getting on money he invested in Mexico. When the zeroes
started getting added to the pesos, his investments were frozen until they were gone from the dollar equivalent of his original investment!
[Edited on 1-27-2016 by AKgringo]
If you are not living on the edge, you are taking up too much space!
"Could do better if he tried!" Report card comments from most of my grade school teachers. Sadly, still true!
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gsbotanico
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Yes, the article is only referring to the "modern" peso. I had friends who had peso accounts in Tijuana banks in the 1970s and 1980s to earn a better
interest rate. There was a fixed exchange rate. When the peso was devalued they lost half of their money. Most quickly withdrew their money.
Others left it and lost even more.
The Mexican government went to a floating exchange rate and the peso lost more and more of its value against the dollar. In the 1990s the Mexican
government knocked the three zeros off the currency. The peso underwent an overnight devaluation cutting its value in half, devastating a lot of
Mexicans holding large peso accounts instead of dollars. I heard the moaning and groaning from Mexican businessmen who depended on dollar imports.
Businesses closed.
I had started working in Mexico in 1991 and wisely insisted on being paid in dollars. Anyone who has used the toll road in Baja California has seen
the fluctuating cuota in dollars. Right the it's the cheapest it's been in a long time. The peak I saw a few years ago was $2.65 in Rosarito. Now
it's less than $2.00, and that includes the annual raise each year in the peso price that is allowed by the government.
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SlyOnce
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inflation is already occurring in MX, our food prices are up and its noticeable. Food cost is a very direct measure of inflation. My wife is paid in
pesos and she's moaning but my dollars go further (but not quite as far due to inflation).
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