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Woooosh
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Mexican Central Bank Governor Halts Peso Collapse
(Reuters) - Mexican Central Bank Governor Guillermo Ortiz (L) speaks with Mexico's Finance Minister Agustin Carstens after a news conference at the
Presidential Palace in Mexico City October 8, 2008. Mexico's central bank stepped in on Wednesday to halt the peso's worst slide since the Tequila
Crisis of the mid-1990s, stopping the currency from collapsing due to the world financial crisis. REUTERS/Henry Romero (MEXICO)
I guess too many of us were dumping dollars for pesos at once again.
[Edited on 10-8-2008 by Woooosh]
[Edited on 10-8-2008 by Woooosh]
\"The only thing necessary for the triumph of evil is for good men to do nothing\"
1961- JFK to Canadian parliament (Edmund Burke)
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Hook
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The awesome power of the Nomads board !!!!!! 
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woody with a view
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what's the rate now?
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bajalou
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12.32 around 430p Mountain Daylight Time
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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Woooosh
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12.36 to the dollar at 3:30pm. The rate changes 24/7 in the world currency market.
I wonder what the "target" number is for the Mexican gov't to leave it alone? 11:1, 12:1, 10:1 ... 5:1 in their dreams!
[Edited on 10-8-2008 by Woooosh]
\"The only thing necessary for the triumph of evil is for good men to do nothing\"
1961- JFK to Canadian parliament (Edmund Burke)
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Hook
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Ya gotta love a country where tequila can cause a run on the currency. 
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CasaManzana
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10/8/08 3PM the bank.......
.......ATM in Mulege gave us $12.12 pesos/$1 USD
Things are expensive, but at least we get a free trip around the sun once a year
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Hook
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Wasn't there a near tortilla crisis just a couple years back when corn went through the roof.?
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Cajones
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The Mexican newspapers are advising their readers to tighten their belts and be prepared for large price increases. Everything that is imported from
the US just went up 20%, that includes gasoline. Almost all the gasoline in Baja is imported from the US.
The average worker in a TJ maquiladora makes 800 pesos per week. That was about $80/week last month. Today that is $67/week, and dropping.
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Woooosh
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| Quote: | Originally posted by Cajones
The Mexican newspapers are advising their readers to tighten their belts and be prepared for large price increases. Everything that is imported from
the US just went up 20%, that includes gasoline. Almost all the gasoline in Baja is imported from the US.
The average worker in a TJ maquiladora makes 800 pesos per week. That was about $80/week last month. Today that is $67/week, and dropping.
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The Mexican gov't was intentionally raising gasoline prices before this- a little each week.
I think the price of staples is gov't regulated- so 800 pesos still buys 800 pesos worth of basic food (rice, beans, tortillas, eggs and milk). They
would have only $67 worth of buying power if they shopped in the USA or bought imported goods.
\"The only thing necessary for the triumph of evil is for good men to do nothing\"
1961- JFK to Canadian parliament (Edmund Burke)
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Cajones
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13.23 to 1
This morning the Bank of Mexico sold $2 billion dollars to try to stabilize the peso. They sold at 12:1. As soon as they stopped selling the peso
started rising again. Right now the peso is at 13.23. The demand for dollars is insatiable.
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Woooosh
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The Meican government can't afford for long to prop up the Peso at $2 Billion per day.
13.501 at 2:30 pm
but why exchange at 13 when it may go to 20?
\"The only thing necessary for the triumph of evil is for good men to do nothing\"
1961- JFK to Canadian parliament (Edmund Burke)
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Cypress
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Is there something about this I don't understand? My Mexican friend has a hand full of Pesos that are worth less and I'm happy about it?
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woody with a view
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doesn't the price of everything get adjusted daily? that would mean dollars or pesos the price is still the same, although more expensive. i mean, if
you pay in dollars or pesos the seller of any goods isn't going to lose, right? except for loss of volume perhaps.
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Woooosh
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| Quote: | Originally posted by Cypress
Is there something about this I don't understand? My Mexican friend has a hand full of Pesos that are worth less and I'm happy about it?
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Your friends pesos are only worth less if he exchanges them into a different currency. What was 100 pesos in Mexico yesterday will be 100 pesos
today. The problem lies in the next step- inflation. Prices will increase (just becuase they can and peole expect them to) and then it WILL take
more pesos for him to buy the same things.
You and your Mexican friend should be happy that the peso hasn't collapsed yet. That would mess with his buying power!
Think of what this has done for remittances! They were down 12% but I'll bet enough people wired money to Mexico at 12:1 or better the last few days
to make up for that.
\"The only thing necessary for the triumph of evil is for good men to do nothing\"
1961- JFK to Canadian parliament (Edmund Burke)
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Cajones
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| Quote: | Originally posted by Woooosh
Think of what this has done for remittances! They were down 12% but I'll bet enough people wired money to Mexico at 12:1 or better the last few days
to make up for that. |
Remittances from the US are measured in US dollars. They come into Mexico as US dollars, not pesos. They are a source of foreign reserves. The change
in the dollar/peso exchange rate does not change the dollar value of remittances. The devaluation of the peso against the dollar is inflationary in
Mexico because Mexico imports so many of the consumer items it needs from the US.
Have you ever purchased a Mexican computer? A Mexican TV? A Mexican car? Mexican software? Even the tonterias they sell in tourist towns are mostly
imported from somewhere else and paid for in dollars. The old food staple, corn tortillas, has a large US component, as Mexico is not self-sufficient
in producing corn.
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norte
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Cochonies. I buy Mexican beer. Does that count?
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Woooosh
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| Quote: | Originally posted by Cajones
| Quote: | Originally posted by Woooosh
Think of what this has done for remittances! They were down 12% but I'll bet enough people wired money to Mexico at 12:1 or better the last few days
to make up for that. |
Remittances from the US are measured in US dollars. They come into Mexico as US dollars, not pesos. They are a source of foreign reserves. The change
in the dollar/peso exchange rate does not change the dollar value of remittances. The devaluation of the peso against the dollar is inflationary in
Mexico because Mexico imports so many of the consumer items it needs from the US. |
I am able to wire dollars from the USA into a Dollar account in Mexico. Most people use other public wire services though, and it is my understanding
that these are converted into pesos at the prevailing rate unpon arrival Not true?
\"The only thing necessary for the triumph of evil is for good men to do nothing\"
1961- JFK to Canadian parliament (Edmund Burke)
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Cajones
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| Quote: | Originally posted by norte
Cochonies. I buy Mexican beer. Does that count? |
Only if you have a note from you mother.
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Cajones
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| Quote: | Originally posted by Woooosh
I am able to wire dollars from the USA into a Dollar account in Mexico. Most people use other public wire services though, and it is my understanding
that these are converted into pesos at the prevailing rate unpon arrival Not true? |
Without going into detail, if dollars are earned in the US and wired to Mexico, the dollars have to migrate to Mexico. It
matters not whether the person on the other end takes the money as pesos or dollars. Somebody in Mexico ends up with those dollars. Think about how
your bank transfers work and you'll understand.
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