redpepper

Peso dropping

57 posts in this topic

For the ones that think the USD is doomed!

1.00 USD = 13.4831 MXN

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What ever it is keep doing it, just more in our pockets that use USD's. As for the 40% that might change in Nov.

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I agree 100 % .... being European, I like to follow up what is happening with my savings overthere and every time there is an extra reason to worry in Europe, the Euro and the peso both drop in value, the reasoning : in times of greater uncertainty, investors avoid emerging markets (and therefore invest less, buy less stocks there.... and the currency drops).

My guess.... if the Euro collapses... many (American) expats here will be very happy, because the peso will drop and you will get a lot of pesos for your dollar. Maybe it will not collapse (there is to much at stake, also for the US then, especially with elections coming up) but it seems likely that Greece will leave the Eurozone and that will effect the Euro (thus, also the peso).

But as the moderator says..... in the long term, it might become a different story.

And.... the future is anybody's guess (I learnt to do exactly the opposite of what the specialists say).

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"Most fiscally responsible countries in the world" Now that is a strech. Maybe you were not living here in 1994?

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Whoops, not supposed to post as a moderator. Sorry about that. :)

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"Most fiscally responsible countries in the world" Now that is a strech. Maybe you were not living here in 1994?

What Mexico did in 1994 was stop controlling the value of the Peso and let it float on the open market. It was a very responsible thing to do.

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Whoops, not supposed to post as a moderator. Sorry about that. :)

It is OK we know who you are. :D

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Peso goes over 13 to the US$, go convert $

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It is OK we know who you are. :D

You just think you do! :)

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If you were of a mind to have all your money in one currency (big mistake, IMO), put it all in the Canadian $.

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If you want to make money here, watch what day I deposit a check, wait until the next day and the exchange rate almost guaranteed to jump .2, .4 or more, happens every time. Happened Tues, XE was at 13.24, they were going to give me 12.87 at the bank, I talked them into giving me 13.04 - next day XE was 13.5, don't doubt my ability to spike the market exchange rate.

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We were here (in Mexico) in the mid 90's and watched the peso go from 3 to 3000 to one. The ramifications effect life in very strange ways. The solution was to recall all the money and give out New Pesos which is what we called today's money for almost a decade. That's closer to Argentine fiscal policy than a responsible country's. The peso got devalued from the policies of 'the most fiscally responsible country in the world'? Or do you think Mexico is now more open and transparent in how they deal with financial matters? Really? They had Harvard and Princeton PhD's running things then too.

I'd say that it is highly possible the New Peso is stretched like a rubber band and one of these spikes started by the US stockmarket going down a bit could well just keep going. Last time it started in the last months of a Presidential administration and that's where we'll be again this fall.

I agree wholeheartedly that putting all of one's savings into a variable currency is dangerous, and that at the moment the Canadian dollar is more stable than most even if it is a loony. Swiss francs of course are 'the gold standard'. These are challenging times for wealth managers everywhere... my only suggestion is don't buy derivatives.

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Yes, put your money in the Looney. It will stay frozen like most of the Canada most of the time. Just joking folks, don't get yer knickers in a knot. Canada is one of the most gorgeous countries on the planet, just a bit chilly at times. Otherwise, we'd be living there, quite frankly. The U.S. is in deep doo doo regardless of who is sitting in the White House. Ya can't borrow 40 percent of your national budget year after year and stay in business. This isn't rocket science.

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We were here (in Mexico) in the mid 90's and watched the peso go from 3 to 3000 to one.

Bill, I am puzzled by what you wrote. I have been in Mexico since 1981. The zeros were added to the peso in the 80's, in the devaluations during the de la Madrid administration. In 1993, Salinas took the infamous zeros away and introduced what was then called the nuevo peso.

Could you kindly clarify what you wrote?

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Drat..This Peso devalution trend could lock out pending Mexican home buyers

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Tobyjug,

You probably underestimate affluent Mexican's who, for many reasons, hold the majority of their assets in US dollars.

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Peso is not dropping. The US$ is rising. Monitor it against the C$ as well and you will see US$ rising.

Don't get me going about homes in US prices. lol It is shear stupidity. Meanwhile with current situation regarding security most buying will be Mexicans at lakeside, if anyone, and those houses priced in US$ just went up about 10%. Imagine buying 2 months ago and closing today and you are buying in the national currency of Mexico? Good luck selling.

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Peso is not dropping. The US$ is rising. Monitor it against the C$ as well and you will see US$ rising.

Don't get me going about homes in US prices. lol It is shear stupidity. Meanwhile with current situation regarding security most buying will be Mexicans at lakeside, if anyone, and those houses priced in US$ just went up about 10%. Imagine buying 2 months ago and closing today and you are buying in the national currency of Mexico? Good luck selling.

That is right. The dollar is stronger and will get stronger,,,,, we might be witnessing the start of a run on the banks in Greece. Forget about the past here. The key is in Greece. If it has to leave the Euro, I will see a lot of happy American faces here. And a sad little Belgian here (my savings in Euro).

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Your right Ajijic, My heading should have read differently. but today the dollar to the peso is. 1.00 USD = 13.7392 MXN

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It might help expats who live here and get their money from US/Canadian banks, eg dollars and exchange them for pesos...unfortunately, prices here will rise, because everything will cost more to the Mexicans who now need more pesos to buy everything that is imported from other countries...so really, it's a catch 22 when the peso loses value.

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If you think about it, the peso has been trading in a range between 12 and 14 for some time. Clearly, when the news gets worse in Europe, it tends to trade lower (more pesos to the buck) and when they put on a new band aid, it trades higher. I'm just trying to get pesos when it crosses 13.5.

Longer term, fundamentals determine exchange rates. Fundamentally, Mexico isn't running big budget and trade deficits. Counterbalancing that is the narco terrorist problem. Anyway you look at it, financial life these days is a crap shoot. And if you don't think there's inflation in the U.S. these days in a big way, go to a grocery store there.

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