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Old 06-05-2015   #31 (permalink)
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Actually, although it is true that the dollar has been gaining value against all currencies, the strength of dollar has been helping also the Mex peso in maintaining it's own strength against other currencies.
Sounds confusing, but a year ago, the rate was 17.63 pesos to the Euro, now it is 17.46, almost flat, with a year's high'low exchange of 17.63/16.63.
Apparently, the trade between the US and Mexico, including the vast amount of tourism dollars, has helped the peso maintain some relative strength, especially when compared against the S American currencies, but also against the Euro.
So, while imports from the US certainly are affected, the same is not true overall for goods imported to mexico from other nations.
I have read predictions of a 20 to 1 exchange rate forecast by the year 2020, wouldn't bank or speculate on it, could also go to a 10 to 1 exchange for all we know.
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Old 06-05-2015   #32 (permalink)
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Quote:
Originally Posted by hawthorne View Post
Actually, although it is true that the dollar has been gaining value against all currencies, the strength of dollar has been helping also the Mex peso in maintaining it's own strength against other currencies.
Sounds confusing, but a year ago, the rate was 17.63 pesos to the Euro, now it is 17.46, almost flat, with a year's high'low exchange of 17.63/16.63.
Apparently, the trade between the US and Mexico, including the vast amount of tourism dollars, has helped the peso maintain some relative strength, especially when compared against the S American currencies, but also against the Euro.
So, while imports from the US certainly are affected, the same is not true overall for goods imported to mexico from other nations.
I have read predictions of a 20 to 1 exchange rate forecast by the year 2020, wouldn't bank or speculate on it, could also go to a 10 to 1 exchange for all we know.

I like the way you think,,,but i think you think to big,,,,just my thoughts,,,,,,and i think big,,,,,
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Old 06-06-2015   #33 (permalink)
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Yes, while i was down in Playa a few weeks ago, the rate vs USD dropped to close to 15 even, so I was obviously not too pleased about that. But I am considering a longer stay in the next month or 2 so would be nice for it to be around 16 then as it would save me a decent amount of money.

As a person very interested in international economics and currency exchange impacts, I had the same question about local prices possibly rising as a result of the strengthening USD vs Peso. I have spent almost 2 months in Playa over the last 1.5 years, which spans this increase from the low 13's to the mid 15's and indeed, I have not really seen a major impact on prices in Playa. This is especially true of anywhere off of 5th, but it also appears to be the case for even more tourist-oriented places. I have eaten at few restaurants on each trip and their prices have not moved during this time.

I think about it like this... most costs in Playa do not go up as a result of this, unless they importing goods directly from the US. Most restaurants, hotels, shops and even big stores do not fall into this category. And, the only people really getting a benefit from the USD's strength are those of us who earn our salaries in USD and travel internationally. And, while Americans are probably the biggest single group travelling to Playa, there are tons of people from other countries visiting there as well. So, if a store or restaurant owner were to raise prices solely because the USD was stronger vs the peso, it would make little sense IMO, because they would essentially be pricing out many people from other countries, whose currencies remain on par with or lesser to the peso.

With this said, there is one type of business where I have noticed and increase in prices over the last 6-9 months and that is the Spa/Massage places on 5th. Only about a year ago, you could get a full hour or 70 minute, full body light, medium or heavy pressure massage for $20-$25. You might still be able to find one for $25 on the south end near the ferry pier, but now, most of the places are charging $30-$35 for an hour, and many will up that charge if you want heavy pressure or sports massage. In addition, most places have shored up the difference between paying in USD & Pesos, so you can't really get as good of a deal paying in pesos any more either. I don't have a huge issue with this since it is still way cheaper than most places in the US. However, what I DO have an issue with is that many of these places are still only paying their employees a measly 100 pesos per massage and that really sucks for them! They already do not make anything unless they actually perform a massage, so to raise your prices 25% and not pass a similar raise along to them is pathetic IMO. If you go get one here, PLEASE give them a nice tip!
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Old 06-06-2015   #34 (permalink)
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Not too pleased with 15, huh?
I remember in 2008 when it dropped to 10.
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Old 06-06-2015   #35 (permalink)
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Not too pleased with 15, huh?
I remember in 2008 when it dropped to 10.
Same here - and at one point it dropped to 9.8 around that time. Fortunately for me, those days are long gone.

Whoever is saying the prices won't increase has not been shopping in the supermarkets or eating in restaurants recently. Some prices have risen greatly. Milk and beef rose greatly about 3-4 years ago because the same drought conditions in the US southwest affected similar beef and dairy industry conditions in Mexico - but aside from that, other non-drought-related goods and services are up noticeably here, and presumably all across Mexico too, primarily as a result of the favorable (to us) exchange rate - more pesos to the dollar is a wonderful thing, but local prices do go up to attempt to cover for it.

Although many prices are creeping up, some have shot up significantly. My cheap and tasty Leon beer has gone from 53 pesos for a six-pack to 65 in the last year; a can of Gatorade powder (made in Mexico) went from 53 to 85 in the last 6 months; a meal of porkchop sandwich (torte de chuleta de cerdo), small beans, and a Corona at El Fogon went from 58 to 82 in the last year (and probably more today - haven't been for a month or so, so I'm expecting another rise at the next visit). Prices are on the move, and it's not down. I welcome a good exchange rate, but it doesn't come without its cost to the infrastructure of the local economy, and it doesn't depend solely on direct imports from the US either.
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Old 06-06-2015   #36 (permalink)
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leon and montejo are still 59p at Soriana.
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Old 06-06-2015   #37 (permalink)
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Highest exchange rate on AV. 5 tonight was 14.65 pesos to 1 USD
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Old 06-06-2015   #38 (permalink)
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leon and montejo are still 59p at Soriana.
Thanks Eric - I'll check Soriana. The prices I quoted were at Mega (which, strangely enough, is now owned by Soriana, since last 1 January 2015)
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Old 06-07-2015   #39 (permalink)
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Highest exchange rate on AV. 5 tonight was 14.65 pesos to 1 USD
I assume that you are talking only about the Cambios? One thing that I forgot to mention in my previous post was that while many restaurants do indeed fleece people paying in USD (my most blatant was Sur giving 11 to 1 while the real rate was 13.5... a nice little 23% surcharge profit for them lol), the one place I found that usually gives the best USD rates for customers is Starbucks. Every time I have been there over the past year, they are giving essentially the average daily rate... maybe with a 1-2% max buffer. This is clearly displayed, at least in their 5th & 10th location. Gotta give them some props for that. Granted, they are more expensive than competitors like Ah Cacao, but nice to see that they are giving a fair exchange rate anyway
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Old 06-07-2015   #40 (permalink)
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I assume that you are talking only about the Cambios? )
Correct.
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Old 06-08-2015   #41 (permalink)
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Originally Posted by beam-eye View Post
Thanks Eric - I'll check Soriana. The prices I quoted were at Mega (which, strangely enough, is now owned by Soriana, since last 1 January 2015)
mega 15.50
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Old 06-08-2015   #42 (permalink)
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Originally Posted by JimG37 View Post
I assume that you are talking only about the Cambios? One thing that I forgot to mention in my previous post was that while many restaurants do indeed fleece people paying in USD (my most blatant was Sur giving 11 to 1 while the real rate was 13.5... a nice little 23% surcharge profit for them lol), the one place I found that usually gives the best USD rates for customers is Starbucks. Every time I have been there over the past year, they are giving essentially the average daily rate... maybe with a 1-2% max buffer. This is clearly displayed, at least in their 5th & 10th location. Gotta give them some props for that. Granted, they are more expensive than competitors like Ah Cacao, but nice to see that they are giving a fair exchange rate anyway
Those places don't always offer "bad" exchange rates because they are trying to swindle you or add more profit. There are real transaction costs and risk factors for small businesses related to poor exchange rates for their customers. Could some of those businesses be trying to get more money from you? I wouldn't doubt it, but don't automatically think that the majority of that is necessarily going to profit.
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Old 06-09-2015   #43 (permalink)
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Could get to 16-16.50 through the summer. CAD and EUR exchange rates haven't shifted much since those currencies are dropping in value as well. I think this is why alot of prices have stayed stable in Playa, its not just Americans visiting but alot of Europeans and Canadians. If prices started increasing in relation to those currencies it could start affecting tourism.

It might go down to around 15 in the near term as well but watch around Sept-Dec when the Fed is geared to start raising rates.
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Old 06-09-2015   #44 (permalink)
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Today, tipo de cambio at:
Home Depot was $13.90
Sorianna was $15.58
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Old 06-09-2015   #45 (permalink)
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Peso Hits All Time Low Against The Dollar

From today's Riviera Maya News:
Riviera Maya News » Mexican peso hits all time low against US dollar
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