Just this weekend, the dollar in Mexico broke the $18.70 pesos per $1 barrier, a record, and as expected, it wasn't going stop there. Now it's almost at $19 pesos per dollar.
The Mexican peso has depreciated 6.7% in value, brought on mainly because of the fall in oil prices, which is currently at $28 dollars per barrel, on the overall downturn in global markets. As well as low expectations from the International Monetary Fund regarding global growth based on data from China and now the U.S., which shook stocks today and worried investors as well.
Carlos Leos Martínez, president of Tijuana's Exchange Rate Centers Association, stated last week that the dollar's rise is inevitable if oil prices continues to go south.
"If it continues to dwindle, it'll reach another historic price mark. It's quite possible that it will reach the $20-peso mark."
People south of the border who are used to buying dollars are now panicking over the fact, since most of them pay their rents and other commodities in dollars. Economists recommend not to purchase dollars unless it's an emergency.
Via Sin Embargo
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cynjen.romero@sandiegored.com
Translated by: edgar.martinez@sandiegored.com
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