Having Experienced A Devalued Peso From 1972 to Present...
May I make the following observations...
46 years ago when president Portillo was facing a weakened peso Mexico was an utterly different country than what you see today.
There were far far far fewer USA products on store shelves. Tourists were wealthy but if they traveled to tourist areas seeking US products they found stuff with prices inflated as much as 300% as found in the USA.
Almost gasoline was inexpensive. Pemex Cien which was closest to USA regular gasoline cost 45 cents per gallon versus 32 cent gasoline in the USA.
Except in heavy metropolitan areas, good quality basics such as lettuce and even tomatoes were scarce and of low quality except in areas where they were grown locally. I remember gringo stampedes at the beach when the cry when out LETTUCE! An hour later only shriveled remnants were to be found on the floor.
Beef needed to have the living snot pounded out of it in order to be edible. Regional beef had the texture of a pencil eraser block. We used to joke that a steer had been run for ten miles then teased to death before being turned into "bistec"
Long-term visitors had better adapt to a more Mexican diet or they would suffer withdrawals that would chase them back to the border. For decades my mouth watered as I approached the border with dreams of a thick hamburger and a real salad. 180-days of doing without led to cravings.
Today a walk through a supermercado reveals isle upon aisle of foreign products. Mexico no longer is autonomous with regard to corn production never mind rice and flour. Completely Mexican owned companies buy ingredients on the open market. A whopping percentage of petroleum products comes from foreign wells and refineries.
When inflation whacks the Mexican consumer, they react much differently than American consumers. They simply cut back or eliminate. Mexicans are past masters of stoic endurance.
Modern Mexican consumers are not going to have a bunker mentality. But supermarket shelves are going to thin as far as variety and sizes. Best Foods mayonnaise may shrink down to 4oz mini jars that have a price per oz that would cause gasps from American visitors.
Mexico now has a burgeoning middle class the overwhelming majority of which live in cities. Do USA and Canadian RVers hang out in the larger Mexican cities? I think not. So what I wrote above is really going to come into play.
As I write this, the peso has shriveled in value to less than 20 to one against the dollar. Pundits claim what when (not if) the leading political presidential candidate wins the election and if he so much as hints about impacting foreign industry the peso will descend to 30 to one against the dollar.
How does this affect a visitor? Very little safety wise. In 1972 it took months for stores to adjust prices for the devaluing peso. Today the gossip vine has an entire village knowing the rate within minutes and sticker machines will be pasting new labels on luxury items within minutes. There will be few "bargains" except perhaps for labor when the dollar overwhelms the peso. Fruits and vegetables will be very cheap.
Community stores such as DICONSA will try and emulate the history of the CONASUPO stores of the 70's buy this isn't the 70's.
If an RV'er knows what a weaker peso will bring and can adapt to a limper availability of foodstuffs, heading to a beach or Bajio winter hangout will still be very attractive.
Please be generous in your tips. A whole ten pesos purchases a quart of gasoline for the family car. 50 pesos buys a bit over two gallons.
I have seen so many cases of tourist Sticker Shock about imported stuff it isn't funny. Arriving prepared is so much easier...
46 years ago when president Portillo was facing a weakened peso Mexico was an utterly different country than what you see today.
There were far far far fewer USA products on store shelves. Tourists were wealthy but if they traveled to tourist areas seeking US products they found stuff with prices inflated as much as 300% as found in the USA.
Almost gasoline was inexpensive. Pemex Cien which was closest to USA regular gasoline cost 45 cents per gallon versus 32 cent gasoline in the USA.
Except in heavy metropolitan areas, good quality basics such as lettuce and even tomatoes were scarce and of low quality except in areas where they were grown locally. I remember gringo stampedes at the beach when the cry when out LETTUCE! An hour later only shriveled remnants were to be found on the floor.
Beef needed to have the living snot pounded out of it in order to be edible. Regional beef had the texture of a pencil eraser block. We used to joke that a steer had been run for ten miles then teased to death before being turned into "bistec"
Long-term visitors had better adapt to a more Mexican diet or they would suffer withdrawals that would chase them back to the border. For decades my mouth watered as I approached the border with dreams of a thick hamburger and a real salad. 180-days of doing without led to cravings.
Today a walk through a supermercado reveals isle upon aisle of foreign products. Mexico no longer is autonomous with regard to corn production never mind rice and flour. Completely Mexican owned companies buy ingredients on the open market. A whopping percentage of petroleum products comes from foreign wells and refineries.
When inflation whacks the Mexican consumer, they react much differently than American consumers. They simply cut back or eliminate. Mexicans are past masters of stoic endurance.
Modern Mexican consumers are not going to have a bunker mentality. But supermarket shelves are going to thin as far as variety and sizes. Best Foods mayonnaise may shrink down to 4oz mini jars that have a price per oz that would cause gasps from American visitors.
Mexico now has a burgeoning middle class the overwhelming majority of which live in cities. Do USA and Canadian RVers hang out in the larger Mexican cities? I think not. So what I wrote above is really going to come into play.
As I write this, the peso has shriveled in value to less than 20 to one against the dollar. Pundits claim what when (not if) the leading political presidential candidate wins the election and if he so much as hints about impacting foreign industry the peso will descend to 30 to one against the dollar.
How does this affect a visitor? Very little safety wise. In 1972 it took months for stores to adjust prices for the devaluing peso. Today the gossip vine has an entire village knowing the rate within minutes and sticker machines will be pasting new labels on luxury items within minutes. There will be few "bargains" except perhaps for labor when the dollar overwhelms the peso. Fruits and vegetables will be very cheap.
Community stores such as DICONSA will try and emulate the history of the CONASUPO stores of the 70's buy this isn't the 70's.
If an RV'er knows what a weaker peso will bring and can adapt to a limper availability of foodstuffs, heading to a beach or Bajio winter hangout will still be very attractive.
Please be generous in your tips. A whole ten pesos purchases a quart of gasoline for the family car. 50 pesos buys a bit over two gallons.
I have seen so many cases of tourist Sticker Shock about imported stuff it isn't funny. Arriving prepared is so much easier...
