ligui
Senior Nomad
Posts: 891
Registered: 2-9-2008
Location: Fraser co.
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Mood: love Baja !
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Dollar takes a dive.
Peso is kicking some a-- on the US dollar.
Could someone please explain this ?
  
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mtgoat666
Platinum Nomad
Posts: 20530
Registered: 9-16-2006
Location: San Diego
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Mood: Hot n spicy
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Trump’s policies have devalued the dollar. Dollar has been sinking for past year relative to mex peso.
Peso is strong, as dollar has been weak, and interest rates in mex are relatively better than in USA, so peso is favored for short-term deposits
(getting like 7 percent).
Usa stock market gains are partly an illusion, since dollar has lost value relative to other currencies.
In past year dollar down 15 percent relative to euro, and dollar down 16 percent relative to peso. So 16 percent s&p500 gain in Past year is
nothing if net zero if you were planning to spend your usa investment gains in mexico or europe
Btw, trump has said he would like to see even lower dollar, to boost usa exports, so if are going to need pesos in 2026, buy them now before the
dollar tanks even more!
Trump keeps pushing to take over the fed, and cut fed rates. This would cause dollar to drop another 5 to 10 percent.
[Edited on 1-28-2026 by mtgoat666]
Woke!
Hands off!
“Por el bien de todos, primero los pobres.”
“...ask not what your country can do for you – ask what you can do for your country.” “My fellow citizens of the world: ask not what America
will do for you, but what together we can do for the freedom of man.”
Pronoun: the royal we
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Tioloco
Elite Nomad
Posts: 5302
Registered: 7-30-2014
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Just saw a picture I took in 2019 in front of a store in Sonora with
17 to 1 exchange rate posted on the door. Was 10 to 1 about 25 years ago. Currencies fluctuate- fact of life.
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David K
Honored Nomad
Posts: 65430
Registered: 8-30-2002
Location: San Diego County
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Mood: Have Baja Fever
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Today:
How much is $1 US in pesos?
17.14 MXN
USD to MXN exchange rates today
USD MXN
1 USD 17.14 MXN
5 USD 85.72 MXN
10 USD 171.44 MXN
20 USD 342.88 MXN
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This isn't any big change. It has been between 16 and 20 for the past 10 years. In 2004, it was 11 pesos per dollar!
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AKgringo
Elite Nomad
Posts: 6302
Registered: 9-20-2014
Location: Anchorage, AK (no mas!)
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Mood: Retireded
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It is a world wide thing!
Going back in time a couple of decades, there is only so much blame, or credit for the status of the US dollar that you could put on Trump, Biden,
Trump, or Obama!
I remember in 2016 I was in Mulege and needed a few more pesos. The Dollar was sliding then, and I could not draw pesos with my debit card at any
ATM, and the local bank would not exchange the greenbacks I had in reserve either!
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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Alan
Super Nomad
Posts: 1629
Registered: 4-6-2005
Location: Yucaipa, CA/La Paz
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For anyone that bought property years ago and were considering selling, this could prove to be good news. I bought way back when the peso was 10:1. If
I were to sell today, even for the exact same dollar amount I paid, in the eyes of the Mexican government I will have nearly doubled my investment so
I would have to pay a significant capital gains tax. As the dollar falls, we reduce our capital gains taxes 
In Memory of E-57
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JDCanuck
Super Nomad
Posts: 2417
Registered: 2-22-2020
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Debt/net worth up, value down. Value goes up again when net worth growth exceeds debt growth. Mexico has relatively low debt compared to their recent
growth rates. Same can be said for most European countries, especially Switzerland, Germany and Norway, so they can increase debt at very low rates,
while others are forced to pay higher rates on their debt.
Most of us are familiar with this when we go to the bank to borrow money on a new mortgage and they immediately look at your net worth and existing
debt as they set your rates.
Very simply, as the US expands their debt faster than they increase the economy, they will be forced to pay higher and higher rates on long term
treasuries to get global lenders to fund the increased risk of default. Forcing the Feds to drop the short term rates will have little effect on long
term rates and the yield curve will continue to steepen while those who have large savings in bonds and CDs will earn less and less interest relative
to inflation and pushing investors to seek higher gains in highly priced and higher risk gold and equities or Swiss bonds for safety at extremely low
yields.
https://tradingeconomics.com/switzerland/government-bond-yie...
[Edited on 1-29-2026 by JDCanuck]
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LancairDriver
Super Nomad
Posts: 1605
Registered: 2-22-2008
Location: On the Road
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Quote: Originally posted by ligui  | Peso is kicking some a-- on the US dollar.
Could someone please explain this ?
Gold 1-28-26. $5563.49/oz
Silver. 119.04/oz |
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