In Mexico there is great concern about the situation of the dlar and the devaluation of its currency: the dollar increased to 20.20 Mexican pesos, compared to 19.93 pesos that was last Wednesday, November 25. It had a loss of 0.44 percent.
The banks varied their price by pennies. Citibanamex offered it at 20.52 pesos, while BBVA Mxico at 20.20 pesos and Banorte at 20.30 pesos. “The depreciation of the peso in the session is due in part to a moderate episode of nervousness over some negative news about the coronavirus pandemic”Banco Base said in a statement.
Why is the dollar rising in Mexico?
The dlar in Mexico had a strong increase due to various factors. The main one has to do with the increase in the price of important products that made goods and supplies more expensive, added to the global economic crisis due to covid-19. Many companies were faced with the need to raise your costs.
Even some national factories and companies also increased their prices since their machinery or some components of their products are imported. This extends to the food, pharmaceutical, textile, automotive and electrical appliances industries. Therefore, if companies tend to increase their products, Mexico will see a rise in inflation towards the end of the year.
“To think that from our perspective we should not intervene so that our currency is artificially strengthened, that it is the Bank of Mexico that decides and that we have confidence in our economy and not start releasing money to control finances”, explained the president AMLO, Manuel López Obrador.
The aggregate: “Just as the press is regulated by the press, the market is regulated by the market, no interventionism. We consider that we are well, that we have no problems. We are not going to spend our reserves, we carry 10 billion dollars at the time we are in government. ”
Complications for Mexicans around the dollar
Mexicans will not only be victims of inflation to consume within their country, but also tourism to the United States will cost more: plane ticket, lodging, food and all the expenses that are made in the country.
In addition, Mexico is the fifth emerging country that has foreign debt that has dragged from 2019 469,729 million dollars. Therefore, the increase in the US currency could generate complications to cancel it.
High dollar benefits
Those who do benefit from this situation are the Mexican entrepreneurs who export their products, since the countries will buy them in dollars and the exchange to Mexican peso is more money.
Mexican tourism will also benefit: for those who have dollars they will be even cheaper. Citizens of the United States, mainly teenagers, often spend their “Spring Break” or spring break in Cancun, Playa de Carmen and Tulum.
However, due to the pandemic, an opening of borders is not yet planned. This celebration takes place between March 18 and 24 every year, but Mexico will only allow it if there is the vaccine.