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The Peso is Tanking

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1 hour ago, chicamysterious said:

I show it climbing. I just looked and it was 20.75.

And taking into account how today could influence it, it's actually higher now than on the 1st of November. I transferred money and it was 18.86

Not climbing but falling in value.

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4 minutes ago, chicamysterious said:
1 hour ago, AlanMexicali said:

Not climbing but falling in value.

 

minutes ago · 

Well I stating from when they posted earlier at "20.23" and 20.75 is higher than 20.23 but mainly that it is actually higher since the first of the month. It's gone up everyday. I see it's now 19.84 but that is still 1 PESO higher than 8 days ago. I am sure this election will have a "hysteria" effect. not sure how long it will effect it either.

Values go up and down all day it's the long term net I am interested in.

I can remember a few years ago it was 10 PESOS and it was in that neck of the woods for a long time.

I think even at 18 its been high. not complaining but I've been expecting it to fall for some time. let's see after a month

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Peso has already bounced back from under 20.6 to 19.7.  Still a deal, go get some this morning.

Once the chicken littles realize the sky hasn't fallen this bargain will be gone.  Great time to get pesos for your water bills, property taxes, end of year gifts for your helpers.

Good idea to keep our heads down though until everyone gets over their initial reaction.

 

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6 hours ago, chicamysterious said:

minutes ago · 

Well I stating from when they posted earlier at "20.23" and 20.75 is higher than 20.23 but mainly that it is actually higher since the first of the month. It's gone up everyday. I see it's now 19.84 but that is still 1 PESO higher than 8 days ago. I am sure this election will have a "hysteria" effect. not sure how long it will effect it either.

Values go up and down all day it's the long term net I am interested in.

I can remember a few years ago it was 10 PESOS and it was in that neck of the woods for a long time.

I think even at 18 its been high. not complaining but I've been expecting it to fall for some time. let's see after a month

If you insert the USD where you have  peso you would be correct. Otherwise you are wrong. Peso rising [in value] would be the pesos per 1 USD are going down = less pesos to buy 1 USD - not more pesos to buy 1 USD.

The peso hasn´t been $10 pesos to the USD dollar for about 12 years. A few years ago it was steady around $12.00 to $13.00 pesos to the USD. 10 years ago it was steady at about $10.50 to $11.50 pesos to the USD.

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What the people of Mexico really have to worry about is what will happen to their currency after the inauguration. Will the USA actually follow the immigration, border "wall", trade and economic policies that have been proposed? If so, major problems will arise.

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For everyone saying 'buy pesos now': if you're using an ATM, be aware that the daily rate hasn't had time to reflect the change yet. Visa is still offering 18.29 to the dollar all day today (before foreign transaction fees). Tomorrow we might see a jump to 19.50 or so, *if* the peso stays above 20 all day.

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9 minutes ago, lobita said:

For everyone saying 'buy pesos now': if you're using an ATM, be aware that the daily rate hasn't had time to reflect the change yet. Visa is still offering 18.29 to the dollar all day today (before foreign transaction fees). Tomorrow we might see a jump to 19.50 or so, *if* the peso stays above 20 all day.

Capitol One uses current rates during business hours.

Peso already under 20.

 

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13 hours ago, HookEmHorns said:

I think you are confused. When people here say that the peso is rising, they are NOT talking about the Value of the currency(unless they specify that they are) , but that they can get more pesos for their dollar. It seems obvious to the meanest intellect that when the peso climbs, the value drops. Many people are simply interested in how many pesos you can get for the dollar. The more it rises, the better for those with dollars. Hope that helps.

I think you are confused. Under your new system of currency exchange the US dollar is falling because I can buy the same amount of pesos with less dollars. LOL

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The peso weakened in nasty ways even further in the harsh daylight of this morning.  At $20.6 MXN to $1 USD,   that's an 11% loss of wealth ...  for all our Mexican families & friends.

Imagine watching your net worth ... savings ... bank accounts ... falling 11% in just a day or two ... due to an election in a different country. 

This recent rapid 11% loss in MXN peso value & 125 million people's net worths, comes on top of the previous 50% losses in  just the last 2 years.

The total losses for ordinary Mexicans in just 2 years?    => 61% losses.

and yes,   these losses will be reflected    for years   in the lives of ordinary people all around us.

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A couple of caveats:

The depreciation mainly affects imports from the U.S.  In the past the Chinese have absorbed short term currency fluctuations with their exports.  And things made wholly in Mexico are not necessarily affected with short term fluctuations.

So blanket statements that suggest all Mexicans have lost 61 percent of their savings or purchasing power is exaggeration.  Because of world trade matters which are bigger than one country the U.S. dollar is currently quite overvalued against a number of currencies.

Ask a Canadian about that, for example.

Secondly, when it comes to exporting from Mexico or travel to Mexico these become a greater and greater bargain, drawing in more spending from outside.  That is a force in the opposite direction as it grows.

It is more correct to view this from the perspective of purchasing power and the rate of inflation in this country is still under 4 percent.  That reflects the real impact on purchasing power.  Most Mexicans don't shop at Costco and buy a bunch of imported stuff.

Also, the price of oil remains very low continuing to hurt the Peso.  Oil is the biggest problem for this country as the loss of earnings from it has dried up all sorts of economic activity and spending here.  For example those budget cuts in badly needed road construction and repair.

BTW, Peña Nieto and Trump have already scheduled a first meeting.  Despite all the harsh criticism of Peña Nieto by partisans, it turns out that his initial reaching out, accepted only by Trump, has laid the relationship groundwork for making a deal.  And there will be a deal because there has to be.  I can't imagine anyone who has actually looked into how the man does business successfully would rationally think he would do otherwise.  It is his history.  Slap 'em hard initially to get their attention and let them know you are serious and then do a deal.

There are things going on here that have to stop.  Our Oaxaca artisan family are here and they are telling us that the government is deliberately ferrying their own illegal immigrants from there to the U.S. border and basically shoving them across.  This has been well reported on Mexico News Daily and other news sites.

It doesn't matter if the U.S. tolerated this in the past, it is clear from both the election and a great deal of polling that most Americans including legal immigrants, want this sort of thing to stop.

If it were going in the other direction Mexico wouldn't tolerate this in a New York moment and it has to stop.  And it will as part of a deal.

Let's try not to get caught up in short term hysteria here.  You will notice the financial markets are doing quite the opposite of tanking as they have already figured out much of the media and partisan generated negativism has no basis in reality. 

 

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BTW, one of the finest authentic Mexican folk art shows, the Feria, begins tomorrow at the Chapala Club de Yates.  This exchange rate situation gives you the opportunity to own the very best for less because you are not only buying direct from the artists along with the current favorable rates.  

Our artistan family are the Fuentes from Oaxaca generally acknowledge as the top of the line when it comes to Alibrejes.  They bring their very best to this show.  This is the same quality that sells for two to three times the price in galleries NOB.  Their work is exquisite!

This show was organized and has been put on annually by dedicated volunteers specifically to foster and preserve the most authentic forms of Mexican folk art.  By attending and taking advantage of great deals on the very best art you are really helping keep these art forms alive along with the families who create them.  I am told that this show represents as much as half a years earnings for many of the artists.  

They are neither charged for attendance and also other volunteers such as we and a number of our neighbors host the artisans gratis.  For many, the show also picks up travel expense to get here as well.  In return show attendees get artist direct prices that are far below the usual.

We've been hosting for some years now and feel like we get the best part of the deal to have these great folks come and stay with us.

Also there are many exhibitions and some excellent fashion shows and music.  You really owe it to yourself to go to the Feria if you haven't previously.

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Good points, MC, but still... when I came here in 2007, the price of a roast chicken was $70 pesos.  Now it is 100 or 115.  That is the level of inflation the Mexicans have to deal with.  So be kind and generous to your help - give them suitable cost of living increases and tip generously.

 

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Guest bennie2

adding to MCs post: there have been approx 800,000 central american migrants who have come thru mex & thru the US border. the president offered them ammesty before the election. a bill was passed in calif giving them option to vote. there were annoucements in honduras about this. this will go on untill after jan. 2017. this is a political hustle. 

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Encountered it both ways.  For the most part I think not but on the last day, Sunday, I have bargained some successfully.

 

 

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