Peso Tanking?

We got 14.68 pesos to the USD including the 30 peso ATM fee.

Moisheh

It's not like the "Old Days" today, merchants access the SAT/SHCP website every morning with their Smart Phone, and know the tipo de cambio as they are sipping cafe and eating their pan dulce. Most of the foodstuffs now, a majority are imported so don't look for "no icreases" on even basic commodity food stuffs.

I fully expect Petroleos Mexicanos to lump-sum increase the price across the board for comistibles, around 110%. They've done it in the middle of recessions and depressions and they'll keep doing it.

The key to a sagging tipo de cambio is capital flight. Billions of pesos are flapping northbound to Texas. The wealthy and the government base everything on the US dollar regardless of the price in M.N.

If this all sounds a little nuts, remember the economic mantra of the Mexican businessman "When Business Slows, Raise Prices!"

So far, costs aren't changing, except the normal few cents on gas each month.
This year, for the first time, every PEMEX has been successful in using our credit card.

oldbiscuit, like bigdog2 we use the currency we bring back in order to pay the tolls and fuel until we reach our destination. We feel its much easier for us that way. The slight loss on our part doesn't really concern me for carrying some pesos.
In my opinion the price of Mexican staples might rise to compensate. The Mexican wages probably will not.

It is generally the strength of the US dollar. All currencies are down in comparison. Oil exporting countries have extra pressure on their currencies due to crude prices falling. This is forecast to continue for the next while.

In Colombia in the last month the peso has gone from the 1900 range to 2400 per dollar so here also.

It's all about oil. The loonie is in step with the peso. Look for further drops.

Moisheh

I regularly read a couple of political economist type columnists. I don't research what they write to be sure of its accuracy. With that disclaimer out of the way... One writes a lot about the dollar versus other currencies. He says the dollar is gaining value against all of them, and expects it to continue. It's a currency war by the major competitors to the dollar. They all want their currencies to be cheaper, to discourage their imports and encourage their exports. Apparently it has affected the peso as well.

Even the Loonie is down vs. the USD, from what I've read. I'm sure our Canadian members can affirm or correct me on that. (It affects the NHL salary cap calculation such that my Blackhawks might have to shed a highly paid player to meet the cap.)

Anyway bottom line, the USD is moving higher against almost all other currencies. So travel to other countries is getting cheaper. Imports will be cheaper. Exports will be more expensive.

Yesterday, here at Santander, I got 14.4 including the fee.

Old-Biscuit wrote:
:H

Mexico Peso has been on a steady (slow) increase.

Dec. 2013.......13.04
Today Dec. 13, 2014......14.33


LINK


Why would you leave $350-$700 in pesos?

:h I sure hope you don't make a living as a foreign exchange money manager!