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MikeySaid
Joined: 10 Nov 2004
Posts: 509
Location: Torreon, Mexico
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 Posted: Tue Oct 07, 2008 9:03 pm Post subject: The Pathetic Peso |
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The Peso is not so hot right now.
Your salary has virtually been cut by 20% in the last month.
Discuss amongst yourselves. |
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Prof.Gringo
Joined: 07 Nov 2006
Posts: 2236
Location: Dang Cong San Viet Nam Quang Vinh Muon Nam!
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| Posted: Tue Oct 07, 2008 9:45 pm Post subject: Re: The Pathetic Peso |
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| MikeySaid wrote: |
The Peso is not so hot right now.
Your salary has virtually been cut by 20% in the last month.
Discuss amongst yourselves. |
Is that before or after inflation 
The peso has been on a real roller coaster. It was near 9 pesos to one US dollar a few months ago and now it's over 12MXN to 1 USD.
I just checked and it's 12.31MXN = 1USD
Check it out for yourself:
http://www.xe.com/ |
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Guy Courchesne
Joined: 10 Mar 2003
Posts: 9650
Location: Mexico City
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| Posted: Tue Oct 07, 2008 11:14 pm Post subject: |
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| Quote: |
| Your salary has virtually been cut by 20% in the last month. |
Just try not to think in dollars...unless you're sending them home. Then you have troubles.
Inflation is the bigger worry.
http://www.bloomberg.com/apps/news?pid=20601083&sid=a6G8eqIiLzUw
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Mexican Peso Falls to a Record on Outlook for Economy, Rates
By Michael J. Moore
Oct. 7 (Bloomberg) -- Mexico's peso fell to a record low on speculation the global credit crisis will stall domestic growth, forcing the central bank to cut borrowing costs.
The peso was the second-worst performer against the dollar today among Latin America's most-active currencies after the Brazilian real. The peso has dropped 12 percent since Sept. 30, its worst five-day stretch since March 1995, when Mexico was in the midst of a financial crisis caused by the peso's devaluation.
``What we've seen with the Mexican peso and most Latin American currencies is that fear imposes a lot of pressure on exchange rates,'' said Alfredo Coutino, a Latin America economist at Moody's Economy.com in West Chester, Pennsylvania. ``Investors are contaminated by global fear.''
The peso dropped 4.1 percent to 12.3146 per dollar at 4:15 p.m. New York time, from 11.8050 yesterday. The currency touched 12.3669, the weakest since 1993, when the government introduced a new peso equivalent to 1,000 old pesos. It was the second straight day the currency dropped to a record.
President Felipe Calderon is preparing an economic package with the Finance Ministry to soften the impact of the global credit crisis, Central Bank Governor Guillermo Ortiz said today in an interview on Radio Formula. The currency won't continue to weaken like it has so far this week and won't depreciate like it did during the 1995 banking crisis, when it fell 51 percent over a three-month period, he said.
Mexico will still see ``high'' inflation in the next several months, while the U.S. inflation rate will slow more than expected, Ortiz said.
No Growth
The global credit crisis has already reduced some expectations for growth in Mexico, curbing demand for pesos. The slowdown in the U.S. will hold growth in Mexico to zero next year, wrote Gray Newman, chief Latin America economist at Morgan Stanley in New York, in a research note yesterday. The firm cut its 2009 economic growth forecast for Latin America to 1.5 percent from 3.5 percent, citing reduced demand for the region's commodities.
Slower growth will lead Mexico's central bank to reduce its 8.25 percent target lending rate by 2.25 percentage points over the next year, starting with a quarter-point cut in November, analysts at Citigroup Inc.'s Banamex unit led by Sergio Luna Martinez wrote in a research note yesterday. The gap between Mexican and U.S. rates is 6.25 percentage points, the widest since 2005.
Bolsa Tumbles
Economists cut the 2009 growth forecast for Mexico to 2.5 percent from 2.9 percent, according to the average of 33 estimates in a central bank survey released Oct. 1.
The finance ministry will revise its forecasts for economic growth, inflation and the assumed export price for oil in its 2009 budget proposal before Oct. 20, Deputy Finance Minister Jose Antonio Meade Kuribrena said today. The Mexican government currently forecasts the economy will expand 3 percent in 2009.
Mexico's Bolsa stock index dropped 4.0 percent today while the yield on the benchmark government peso bond due in 2024 jumped 5 basis points to 8.62 percent. A basis point equals 0.01 percentage point.
The Federal Reserve will create a special fund to purchase U.S. commercial paper after the credit crunch threatened to cut off a key source of funding for corporations. The U.S. is the biggest buyer of Mexican exports. |
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MO39
Joined: 28 Jan 2004
Posts: 1970
Location: El ombligo de la Rep�blica Mexicana
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| Posted: Wed Oct 08, 2008 1:37 am Post subject: |
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| From my very selfish point of view, since most of my income comes from my US Social Security pension in dollars, the recent drop in the value of the peso has meant more pesos per month for me! |
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El Gallo
Joined: 05 Feb 2007
Posts: 318
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| Posted: Wed Oct 08, 2008 12:47 pm Post subject: |
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So much for using an American Express card (payable in dollars) for convenience.
It was great in August when my pesos bought more dollars but the table has turned. |
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Milenka
Joined: 30 Jun 2008
Posts: 113
Location: Mexico City
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| Posted: Wed Oct 08, 2008 4:00 pm Post subject: Re: The Pathetic Peso |
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| MikeySaid wrote: |
The Peso is not so hot right now.
Your salary has virtually been cut by 20% in the last month.
Discuss amongst yourselves. |
This is exactly how I felt with my overseas clients paying in what turned out to be pathetic dollars a few months ago. I switched my rates to the not so pathetic euro, of course. |
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TheLongWayHome
Joined: 07 Jun 2006
Posts: 1016
Location: San Luis Piojosi
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| Posted: Wed Oct 08, 2008 4:02 pm Post subject: |
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| Time to change those pounds too... nearly 23 pesos to the pound at the moment and rising. |
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NinaNina
Joined: 10 Jan 2007
Posts: 78
Location: Oaxaca
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| Posted: Wed Oct 08, 2008 5:27 pm Post subject: 13.2 |
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In three days, I've seen the peso go from 10.6 to 11 to 12 and, this morning 13.2. These kinds of fluctuations are crazy.
I also get the bulk of my income in dollars, but I can't help but worry that the economy worldwide is on the verge of collapse.
Maybe it's best just to go out to dinner before massive inflation hits.
Provecho!
Serena
Mexican Pop Spot
http://mexpop.blogspot.com/ |
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Guy Courchesne
Joined: 10 Mar 2003
Posts: 9650
Location: Mexico City
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| Posted: Fri Oct 10, 2008 3:42 pm Post subject: |
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| Holy smokes, the peso is at 12.85 today. I haven't seen it this low against the dollar since 9-11. |
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thelmadatter
Joined: 31 Mar 2003
Posts: 1212
Location: in el Distrito Federal x fin!
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| Posted: Fri Oct 10, 2008 3:45 pm Post subject: peso dollar |
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the current dollar situation is bad for me as I do send money home... tho actually my current pathetic employment situation is a bigger worry right now. Wont get into the gory details.
That being said, its been a roller coaster ride and it aint over yet. |
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Prof.Gringo
Joined: 07 Nov 2006
Posts: 2236
Location: Dang Cong San Viet Nam Quang Vinh Muon Nam!
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| Posted: Fri Oct 10, 2008 4:04 pm Post subject: |
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| Bye-bye miss American pie, drove my Chevy to the levy but the levy was dry and good 'ole boys were drinking whiskey and rye saying this will be the day that I die. |
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GueroPaz
Joined: 07 Sep 2007
Posts: 216
Location: Thailand or Mexico
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| Posted: Tue Oct 14, 2008 4:06 pm Post subject: |
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On my Yahoo financial website over the weekend, the interday trading hit a peak of 14, fourteen! Almost enough to pack my bags and head north...no, due east...or due west. I renew my Thailand visa tomorrow for another year, knowing that Pto Veracruz is still Plan B.
When I left Chiapas in Nov. 2001, the rate was about 9.2. I could live fine on 12..
But I expect 12 is artificially high and will soon return to 11 or 10.
For those Mexicans in the USA who do not lose their jobs, the remittances should increase a lot.. |
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notamiss
Joined: 20 Jun 2007
Posts: 908
Location: El 5o pino del la CDMX
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| Posted: Tue Oct 14, 2008 4:57 pm Post subject: |
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| One of the big guys got hurt: Comercial Mexicana filed for concurso mercantil, which is sort of like Chapter 11. |
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Gary Denness
Guest
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| Posted: Thu Oct 16, 2008 11:08 pm Post subject: |
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| MO39 wrote: |
| From my very selfish point of view, since most of my income comes from my US Social Security pension in dollars, the recent drop in the value of the peso has meant more pesos per month for me! |
Me too, from an equally selfish point of view! Actually the peso has been incredibly kind to me. Strengthening up to near 9 pesos to the dollar back a few months ago, just in time for my trip to the US. And now, when I transfer all my blog advertising dollars each month to my bank account...woohoo! I got 12.4 pesos to the dollar on my last transaction.
Inflation would have to rise some to cancel out the extra couple of thousand pesos I'm getting at the moment. |
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the peanut gallery
Joined: 26 May 2006
Posts: 264
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| Posted: Wed Oct 22, 2008 1:45 pm Post subject: |
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My wife and I moved to Europe from SLP 3 years ago. At that time we paid 13.5 pesos for every euro we bought. We have a bank loan from Banamex that still has a years payments left on it. We have dutifully paid our 4000MXN every month which worked out to be about 250 � or 15ish pesos to the euro. Now we are saving about 30 � thanks to the peso. We recently transfered 4 months worth of payments and locked in the exchange rate at 18.4 to the euro!
We planned to work in Europe for about 7 or 8 years and then come back with the cash to buy our home without a mortgage. At this rate our return will be earlier and the house slightly more fresa! |
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