In August of last year, we published an article announcing that it was 20% cheaper to visit and live in Mexico. At the time, the value of the dollar had leaped to 16.45 pesos a 20% increase since the year prior.
[p]In recent days, the dollar has grazed the 19 peso to dollar rate, which is nearly a 30% increase from January of last year when the dollar was priced at 14.69 according to Mexico's Official Federal Diary (Diario Oficial de la Federación) that publishes the daily exchange rate, and almost 50% more compared to two years ago. Today's published rate is 18.508, although the price on the street for average consumers varies.
Caption reads: New One Dollar Bill
The good news is that this depreciation of the peso when compared to last year means that Mexico is an ideal destination for tourists. Expats on fixed incomes and anybody earning in dollars and living in Mexico can benefit from the weak peso too.
Now is a great time for you to painlessly stretch your dollars on anything from health and beauty to auto care, groceries, dining, travel, and entertainment in general. Check out our list of great ideas
The weak peso coincides with the increased popularity of Mexico and Baja California as a destination for travelers. Consider a day trip or weekend trip, where you can visit any of the region's food colectivos, food trucks, fine dining, craft breweries, and wineries. With gas prices slowly decreasing in Baja, now is a great time for a road trip too.
The best part is that in addition to stretching your dollars and having a great time, you will be helping the Mexican economy.
With the peso's continued decline, mostly due to international oil prices reaching its lowest level in more than a decade, Mexicans and Mexican businesses are being hit hard as many expenses (especially in the border region) are fixed in dollars, including components, business loans, rent, and housing payments.
The Mexican government is scrambling to prevent the peso from reaching the 20 pesos to the dollar mark, by auctioning off millions in attempt to strengthen the currency while hoping for international oil prices to stabilize. The fear for the economy is that it might reach the "20/20 mark", with oil prices at $20 dollars a barrel and $20 pesos to the dollar.
[p]In addition to oil sales, according to Forbes , another problem is that the flow of dollars to Mexico has declined.
But, your dollars can go a long way to both helping your personal finances and Mexican's, why? you can spend less on groceries, housing and services and help your southern neighbors along the way.