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I have been hoping some fiscal expert would be making comments and predictions about the peso which is staying so strong.In view of the Mexican economy not being so great, who is doing the investing and buying to keep it there?

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On 2/14/2020 at 11:38 AM, NLU said:

That article would suggest a weaker Peso not stronger which is what's happening. I just glanced at XE just now and the Canbuck is below 14. It's pretty much been dropping steadily this year against the Peso. I can't figure out why.

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4 minutes ago, happyjillin said:

That article would suggest a weaker Peso not stronger which is what's happening. I just glanced at EX just now and the Canbuck is below 14. It's pretty much been dropping steadily this year against the Peso. I can't figure out why.

I am surprised that the CAD $ has not tanked more given their reliance on pumping that filthy Tar Sands ,what a disaster for the environment

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 I just checked Spot rate (half way between buy and sell) at the peso seems to be getting stronger when comparing to a US dollar. At this moment it is 18.4323.  Gosh, a while back, we were getting more than 20 pesos per US dollar.

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42 minutes ago, lakeside7 said:

I am surprised that the CAD $ has not tanked more given their reliance on pumping that filthy Tar Sands ,what a disaster for the environment

In Canada we mine OIL SANDS  just as The United States does in Utah  and California. I see that you have been sucked in by alleged environmental groups sponsored with millions of $'s by certain US Corporations to put the silly tar spin on what is oil . How about we stick to discussing the strong peso. The US dollar has tanked too. Tell us why that is-eh!

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We're talking about 8 percent or so here.  Hardly tanked.  It could be argued the Peso had tanked and is recovering some.

 

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Up here in Seattle, I am told that a maid service charges you $30 US or so per hour for cleaning. When friends in my Condo ask me how much I pay in Mexico, I say about 60 per hour.  I don't mention that I m talking pesos.  And whether I get 17 to 1 or 20 to 1, it's darn cheap compared to Seattle, where I have to clean my own condo :) 

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higher intrest rates in Mexico attract more capital...and therefore, make the peso stronger....among other reasons

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6 hours ago, Alfa said:

I have been hoping some fiscal expert would be making comments and predictions about the peso which is staying so strong.In view of the Mexican economy not being so great, who is doing the investing and buying to keep it there?

Am I the only one who I think knows what Aplha is talking about?  He's looking to future trends that could influence when to(or not) bring some Canadian dollars to Mexico (converted of course). 

Rony has it partly answered. The discussion was never meant to be about spot rates, USD and CAD,  or what we "used to get" etc.  I'd like an answer to the "real" question too, as have been waiting  since mid-December to do a transfer, and the rate has dropped steadily since I missed the window.

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Pretty much everyone is aware that today’s markets are manipulated so it’s hard to make an argument why things are the way they are or how they will be tomorrow or next week. About the only thing you can say is if the dollar index goes one way other currencies will go the opposite way.  Pundits write about the links to their favorite political leanings but that’s what they get paid for. I mostly ignore them.

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If anyone could forecast with any accuracy the future currency exchange rates, they soon would be spending time with  Warren, Bill, and Jeff, and discussing who had  the biggest private jet.

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The signing of the USMCA trade agreement is what has boosted the peso. Investors are figuring that the NOB industrial production will boost the Mexican GDP and ameliorate the internal recession somewhat. This will only last so long. 

Also, AMLO has asked the IMF to increase Mexicos credit line for loans, but has been told that it needs to drastically increase tax collections. So... We are seeing many strong suggestions and new measures to pay more taxes. The gov't can only increase the IVA by so much, Point of Sale taxes are the only sure means to raise taxes in a country where the citizens see tax evasion as a national sport, and corruption takes thr money and returns little to the people in exchange. 

So there will be a little peso bump now, but likely another gradual peso devaluation in the future, because MX STILL doesn't create its own business, it takes it from other countries instead. Sad. 

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The wizards of smart have an opinion too.

The Bank of Mexico has been cutting rates with more cuts predicted for 2020. Most if not all maturities of Cetes have fallen below 7%. Today's USDMXN close was 18.58 near the support level. It did pop a little a couple of days ago after bottoming at 18.54.

Technical levels

Resistance 18.8240

Support 18.5040

https://finance.yahoo.com/news/usd-mxn-tricky-fundamentals-090432876.html

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This can help take some of the price pressure off of imported goods.  I'm sure glad we were able to buy a lot of pesos and an apartment for our Iteso students when the peso was over 20.

 

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Anybody notice that the rate today (2/23/20)  was   19.00???

 

 

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1 minute ago, RickS said:

Anybody notice that the rate today (2/23/20)  was   19.00???

 

 

And the Canbuck is over 14.33.

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