Ateo
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Peso gains ground on U.S. dollar
For those of us that dont live in Mexico and dont monitor currency.....
TIJUANA – Americans aren’t the only ones happy that the U.S. economy is on the mend.
The Mexican peso has continued to gain ground on the U.S. dollar this year, driven by the brightening U.S. economy.
On Monday, exchange houses in the border region were selling the dollar for 12.54 pesos, while they were buying them at 12.30. At the end of last
year, one dollar was selling for 14 pesos.
The value of the Mexican peso relative to the U.S. dollar is particularly felt by residents in this region who see their purchasing power go up or
down on the other side of the border, depending on the exchange rate.
In the last couple of months, those paid in Mexican pesos have seen their buying power improve a bit when shopping north of the border.
That’s because the peso has gained 10.2 per cent in value compared to the U.S. dollar in the last two months as a result of the improving U.S. economy
and growth in foreign investment, said Alejandro Díaz Bautista.
He’s a researcher for Mexico’s National Council of Science and Technology and economics professor of the College of the Northern Border.
He said that the value of the Mexican peso has continued to go up after more jobs were added in the United States in January than expected, dropping
unemployment to 8.3 per cent nationwide.
That positive news, as well as other encouraging U.S. economic indicators, have fueled optimism about the financial future of Baja California and the
rest of Mexico.
The improving U.S. economy means there are more dollars available to invest in Mexico, said Díaz Bautista.
Mexico’s economy is projected to grow between 3.5 to 4 per cent this year, the economist continued, which is better than the 2.1 to 2.4 per cent
sluggish growth many economists predict for the United States.
omar.millan@sandiegored.com
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wessongroup
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That's some welcome news for the Mexican people too .. and I see that Japan will be moving more car production of certain models to Baja and/or Mexico
...
Hard to believe that Japan is outsourcing their production ... Nisan to Thailand, Honda and Toyota to Mexico ... not sure what the Japanese are going
to be building in the way of cars in country ... in the near future...
Hard balance ... ever lowing birth rates, increased production costs and sluggish sales here in the US ... sounds like some place else we have heard
about ... before
Good luck boys and girls ... as from what I was reading the GDP might only be around 2%, (from the CBO) this coming year and maybe a bit longer ..
"CBO projects that inflation will remain very low in 2011 and 2012, reflecting the large amount of unused resources in the economy, and will average
no more than 2.0 percent a year between 2013 and 2016."
"Under the assump- tions of the baseline, debt held by the public is projected to continue its upward climb, reaching $18.3 trillion (or 77 percent of
GDP) by the end of 2021 (see Figure 1-2)."
http://www.cbo.gov/ftpdocs/120xx/doc12039/01-26_fy2011outloo...
Pretty good ... no significant inflation ... but, better watch out on that debt... I mean who doesn't think that $18.3 Trillion is a pretty big number
to call yours ... that b we the "people" ..  nice number ... two light years .... think about it ..
Spending faster than the speed of light...
[Edited on 2-7-2012 by wessongroup]
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BajaNomad
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http://www.sandiegored.com/noticias/22387/Peso-gains-ground-...
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Ateo
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Yep, in my rush to post I forgot the link. Thanks.
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DENNIS
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I wouldn't be getting too excited about today's Peso/Dollar relationship. It goes up and down like a yoyo.
Mexico has elections coming up and with the instability of the country at the moment, all confidence could be gained or lost at the ballot box.
A couple of monts ago, it was around 14---1. Since that time, there have been positive indicators in the US economy, so Mexico will have to better
that to improve their investment image.
Will they? Don't bet your farm on it.
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LancairDriver
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| Quote: | Originally posted by wessongroup
That's some welcome news for the Mexican people too .. and I see that Japan will be moving more car production of certain models to Baja and/or Mexico
...
Hard to believe that Japan is outsourcing their production ... Nisan to Thailand, Honda and Toyota to Mexico ... not sure what the Japanese are going
to be building in the way of cars in country ... in the near future...
Hard balance ... ever lowing birth rates, increased production costs and sluggish sales here in the US ... sounds like some place else we have heard
about ... before
Here's a little more perspective put in simpler terms.It is actually worse as this is a few months old.
Good luck boys and girls ... as from what I was reading the GDP might only be around 2%, (from the CBO) this coming year and maybe a bit longer ..
"CBO projects that inflation will remain very low in 2011 and 2012, reflecting the large amount of unused resources in the economy, and will average
no more than 2.0 percent a year between 2013 and 2016."
"Under the assump- tions of the baseline, debt held by the public is projected to continue its upward climb, reaching $18.3 trillion (or 77 percent of
GDP) by the end of 2021 (see Figure 1-2)."
http://www.cbo.gov/ftpdocs/120xx/doc12039/01-26_fy2011outloo...
Pretty good ... no significant inflation ... but, better watch out on that debt... I mean who doesn't think that $18.3 Trillion is a pretty big number
to call yours ... that b we the "people" .. nice number ... two light years .... think about it ..
Spending faster than the speed of light... :lol
[Edited on 2-7-2012 by wessongroup] |
Here is a little more perspective on the problem in easier to understand terms. The peso is likely to continue to gain on the dollar.
Here is why S&P downgraded the US credit rating:
• U.S. Tax revenue: $ 2,170,000,000,000
• Fed budget:........ . $ 3,820,000,000,000
• New debt: ,,,,,,,,,,.. $ 1,650,000,000,000
• National debt:.. .. $ 14,271,000,000,000
• Recent budget cut:... $ 38,500,000,000
Now let’s remove 8 (eight) zeros, and pretend it’s a household budget.
• Annual family income:................................ $ 21,700
• Money the family spent:. ............................ $ 38,200
• New debt on the credit card: ...................... $ 16,500
• Outstanding balance on the credit card:... $ 142,710
• Total budget cuts: ............................................ $ 385
Any questions?
[Edited on 2-7-2012 by LancairDriver]
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dtutko1
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You talk about timing, We were able to spend about $15,000 usd this winter on our bodega. Mostly exchanged at the upper 13 to 14 peso/usd rate. I
figure I got an extra 20,000 p (over a 12.5 exchange) worth of construction. Add that to the competitive labor rates and it was a good winter for
building.
Dorado Don
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Hook
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"Hard to believe that Japan is outsourcing their production ... Nisan to Thailand, Honda and Toyota to Mexico ... not sure what the Japanese are going
to be building in the way of cars in country ... in the near future... "
Not hard to believe at all. CEOs dont care about balance of trade or what's being built in their country. All they care about are profits and keeping
the stockholders happy. If they can produce cars for less, elsewhere, they'll do it in a heartbeat.
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Sweetwater
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| Quote: | Originally posted by LancairDriver
Here is a little more perspective on the problem in easier to understand terms. The peso is likely to continue to gain on the dollar.
Here is why S&P downgraded the US credit rating:
• U.S. Tax revenue: $ 2,170,000,000,000
• Fed budget:........ . $ 3,820,000,000,000
• New debt: ,,,,,,,,,,.. $ 1,650,000,000,000
• National debt:.. .. $ 14,271,000,000,000
• Recent budget cut:... $ 38,500,000,000
Now let’s remove 8 (eight) zeros, and pretend it’s a household budget.
• Annual family income:................................ $ 21,700
• Money the family spent:. ............................ $ 38,200
• New debt on the credit card: ...................... $ 16,500
• Outstanding balance on the credit card:... $ 142,710
• Total budget cuts: ............................................ $ 385
Any questions?
[Edited on 2-7-2012 by LancairDriver] |
It's a popular example that a lot of folks buy in to....but....the Fed holds somewhere around 40% of that credit card debt @ 0% interest....and has
the ability to increase the money supply to balance the books...not as straight forward as presented....I'm not saying the US should continue to
borrow needlessly but I am saying that a major depression was avoided with most of the rest of the global economy currently in a recession....You do
what you gotta do to make things work out.....and it's never as simple as the surface presentation.....
Everbody\'s preachin\' at me that we all wanna git to heaven, trouble is, nobody wants to die to git there.-BB King
Reality is what does not go away when you stop believing in it. -Philip K Dick
Nothing is worse than active ignorance. Johann Wolfgang von Goethe(1749-1832, German writer, artist and politician)
When choosing between two evils, I always like to try the one I\'ve never tried before. - Mae West
Experience is what keeps a man who makes the same mistake twice from admitting it the third time around.
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tiotomasbcs
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Hey DT, I guess you're buying dinner this week at the Santa Fe?! If I had
your money.... Exchange rates always are better during the end of the year, no? The peso exchanged around 11.5 -- 12.5 last july and august.
It's all good! Tio
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MitchMan
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Lancair, good way to express the national numbers. Sweetwater, thanks for putting a realistic factual perspective on Lancair's representations. We
the people need much much more of this kind of education.... no politicians are giving it to the public.
BTW, it was only a little more than a month ago that the exchange rate was 13.8. I heard that the principal reason that the peso is recovering is
because Mexico didn't get caught up in the bad real estate market practices that we and the rest of the world got caught up in and that by comparison,
Mexican financial structure wasn't therefore rocked as badly and is reaping the benefits currently in a recovering peso. Also, the Mexican interest
rates were recently increased which strengthens their currency.
[Edited on 2-8-2012 by MitchMan]
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wessongroup
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Another one
How much money does American owe other Countries?
Including Mexico
http://chartsbin.com/view/549
[Edited on 2-8-2012 by wessongroup]
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