geeser Posted June 8, 2017 Report Share Posted June 8, 2017 I remember that many posters on this board were saying they were giving raises to their staff because the MX Peso had dropped in value against the US dollar. I disagreed with that reasoning at the time. But I wonder now how many of you who gave raises because the dollar's value increased are now taking the raise back based on the falling dollar? How is it being received? Hopefully with the same grace as the raise was. I still believe in giving raises based on increased performance and somewhat on rise in cost of living in local currency. Link to comment Share on other sites More sharing options...
bournemouth Posted June 8, 2017 Report Share Posted June 8, 2017 Agreed. Link to comment Share on other sites More sharing options...
barcelonaman Posted June 8, 2017 Report Share Posted June 8, 2017 I hope prices of imported food and goods that were raised last year fall but see no signs of it. Link to comment Share on other sites More sharing options...
rvanparys Posted June 8, 2017 Report Share Posted June 8, 2017 Inflation is the culprit not the devaluation of the dollar... Higher prices are in response to the high inflation factor... Link to comment Share on other sites More sharing options...
tomgates Posted June 8, 2017 Report Share Posted June 8, 2017 Are you saying higher inflation will cause an increase in value of the currency? Look at Venezuela. Link to comment Share on other sites More sharing options...
AlanMexicali Posted June 8, 2017 Report Share Posted June 8, 2017 24 minutes ago, geeser said: I remember that many posters on this board were saying they were giving raises to their staff because the MX Peso had dropped in value against the US dollar. I disagreed with that reasoning at the time. But I wonder now how many of you who gave raises because the dollar's value increased are now taking the raise back based on the falling dollar? How is it being received? Hopefully with the same grace as the raise was. I still believe in giving raises based on increased performance and somewhat on rise in cost of living in local currency. http://oilprice.com/Energy/Oil-Prices/Is-75-Oil-Still-Possible.html Someone´s prediction of crude oil prices increasing to $75.00 USD in a few years. I see the Mexican peso raising along with cude oil prices especially if Mexico increases it´s export and production of oil. What if the peso rises to $15.00 pesos to one USD? I see it happening. Link to comment Share on other sites More sharing options...
snowyco Posted June 8, 2017 Report Share Posted June 8, 2017 A look at the last 2 years of MXN Peso values versus US Dollar values points to the Nov 2016 spike and Jan 21 2017 spike were emotional reactions of currency traders** to anticipations of Trump radically altering the USA-Mexico trade relations & anticipation of Trump radically altering US-Mexico relations.http://www.xe.com/currencycharts/?from=USD&to=MXN&view=2Y **Currency traders have long been known as the 'thirteen year old girls' of the investing world, as they have long histories of highly-emotional reactions, followed by returning to more rational positions. Note in the 2 year plot of MXN Peso vs USD values, if we follow the last 2 years of the lower values trend lines, the current MXN peso values fit nicely a leveling off trend of MXN peso values at $18.5 - $18.75. Will Trump take real punitive actions against Mexico? ... How substantive will those actions be? ... or Was it mostly election-rhetoric ? Next, notice how MXN peso values of the past 2 years do NOT track well with the price of oil. ... e.g. NYMEX crude has recently fallen from April to June from $54 a barrel down to $45 (an 18% drop), as the MXN peso has gone the opposite way, instead strengthening by 6%.http://www.nasdaq.com/markets/crude-oil.aspx Finally, unlike the US government, the Mexican national bank has substantial currency reserves and limited debt, which allows Mexican banking officials to work to stabilize the MXN peso vs the US Dollar. For better or worse the US Fed & US Treasury do not have those capabilities to try to stabilize the USD, especially as US Debt has hit $19 .5 Trillion. In addition to that historic record $19.5 Trillion of US debt, the US Treasury has additional historic record high debt of over $4.5 Trillion that it (we) owes to the US Fed. $24 Trillion of US Debt that exceeds $17 Trillion of US GDP, puts the USA in a unique never-before-seen position of fiscal instability. These big overhangs really confuse all guesses about where future USD-MXN peso exchange rates are headed. Link to comment Share on other sites More sharing options...
congodog Posted June 8, 2017 Report Share Posted June 8, 2017 Whatever the real reason for it, I know that as prices are rising here in Mexico (quite a lot in many cases), we've had to cut back on spending. We're on a fixed income and when the prices go up, we have to buy less. We had given our house staff a raise this year for good performance and have no intention of cutting the raise back. But if the peso goes to 15:1, we'll have to cut SOMETHING from the budget. Link to comment Share on other sites More sharing options...
Mainecoons Posted June 8, 2017 Report Share Posted June 8, 2017 The peso is basically back to where it was in October of last year. The so-called "Trump Bump" largely a product of hysteria is gone and now the exchange rate is back to the reality of cheap oil and the disaster called Pemex, which caused the drop to 18+. Given the rampant grand theft from public coffers being reported weekly these days, the widespread inability of government here to provide security or basic services and Pemex itself I wouldn't lose sleep worrying about 15 to one. And you can be assured that if it went that low, the prices of imports are not going to fall. There isn't enough real competition in this country to make that happen. You won't see prices falling at Costco or SuperLake, guaranteed. Link to comment Share on other sites More sharing options...
Al Berca Posted June 8, 2017 Report Share Posted June 8, 2017 Anything 15 or up and I am thrilled with the difference from 9 and 10 twelve years ago, or even the 12 that we had for a couple of years before this. Link to comment Share on other sites More sharing options...
johanson Posted June 8, 2017 Report Share Posted June 8, 2017 I am so angry at my greed, I was just waiting for the peso to go a hair higher when it was 22. Well it started to grow lower and I waited and waited expecting that it would go back up. Well it didn't. The money is still sitting in my US brokerage account. Well at least the US market is at an all time high. But still not as getting 22 pesos per US dollar. Oh well, making a little is better than loosing Link to comment Share on other sites More sharing options...
suegarn Posted June 8, 2017 Report Share Posted June 8, 2017 Unfortunately, it still doesn't help Canadians who have to pay rent in U.S. dollars. In fact, my equivalent amount has gone up each month for rent! That really sucks! Link to comment Share on other sites More sharing options...
Rony Posted June 8, 2017 Report Share Posted June 8, 2017 According to Mexico City radio Imagen this morning. ... Morena lost in Mexico state election, last Sunday, which is a prediction for next year s presidential election. Without Obrador becoming president, the peso should not drop much in value. Therefore, the boost for the peso, since Sunday. The same analyst said that this is about as strong as the peso will get. Buy US dollars. Rony Link to comment Share on other sites More sharing options...
El Saltos Posted June 8, 2017 Report Share Posted June 8, 2017 8 hours ago, rvanparys said: Inflation is the culprit not the devaluation of the dollar... Higher prices are in response to the high inflation factor... The $USD has not devalued, the Peso MX has gained strength. Link to comment Share on other sites More sharing options...
lakeside7 Posted June 9, 2017 Report Share Posted June 9, 2017 He is not dead , he has just stopped breathing......, semantics Link to comment Share on other sites More sharing options...
ComputerGuy Posted June 9, 2017 Report Share Posted June 9, 2017 Reacting to the OP, I can just say that quite often people come here and are so attracted by the weather, the people, the prices, and the food, and a whole new way of life, that they don't really get out of "vacation mind mode" for a long, long time. (I still know some people who calculate their pesos based on the power of "10"... .) And it is not a typical thing when living up north to be converting money, or looking at exchange rates, or feeling empathy for the poor people who work for us. So giving a raise based on the value of the US dollar is not a stretch. One can only hope that, over time, the bubble breaks a little bit and those folks begin to realize the true nature of their new situtation. Link to comment Share on other sites More sharing options...
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