TIJUANA Americans arent the only ones happy that the U.S. economy is on the mend.
The Mexican peso has continued to gain ground on the U.S. dollar this year, driven by the brightening U.S. economy.
On Monday, exchange houses in the border region were selling the dollar for 12.54 pesos, while they were buying them at 12.30. At the end of last year, one dollar was selling for 14 pesos.
The value of the Mexican peso relative to the U.S. dollar is particularly felt by residents in this region who see their purchasing power go up or down on the other side of the border, depending on the exchange rate.
In the last couple of months, those paid in Mexican pesos have seen their buying power improve a bit when shopping north of the border.
Thats because the peso has gained 10.2 per cent in value compared to the U.S. dollar in the last two months as a result of the improving U.S. economy and growth in foreign investment, said Alejandro Díaz Bautista.
Hes a researcher for Mexicos National Council of Science and Technology and economics professor of the College of the Northern Border.
He said that the value of the Mexican peso has continued to go up after more jobs were added in the United States in January than expected, dropping unemployment to 8.3 per cent nationwide.
That positive news, as well as other encouraging U.S. economic indicators, have fueled optimism about the financial future of Baja California and the rest of Mexico.
The improving U.S. economy means there are more dollars available to invest in Mexico, said Díaz Bautista.
Mexicos economy is projected to grow between 3.5 to 4 per cent this year, the economist continued, which is better than the 2.1 to 2.4 per cent sluggish growth many economists predict for the United States.
omar.millan@sandiegored.com
