Mexican peso fluctuation

[anonimitie]

hard times, tough times. it's all over the world, especially the poor and the middle class men. it hit me harder cus i'm a low income monger. i talked about visiting tj for the last couple of months and i'm still here in the states. the workers just gotta hold on and wait for LM cus he'll be there sooner or later. this year will be my tenth year anniversary visiting tj, June to be exact. last date of visit tj- December 2006.

 

[Helpful]

made a run last thurs night. most bars offered between 10.80-12 to 1USD.

YELLOW Cabbies wanted 3$ to/from border

not as many girls inside or out, alley seemed bleak, not many new faces (or pussies ).

tough times $$$

 

[Engel -]

Not as tricky as understanding chicas. International financial issues? Easy in comparison.

 

[Paul in San Diego]

It's a bit tricky. Let's say you have an investment that is foreign (also called international) and is based in a currency other than the dollar. And let's assume that the price of the investment doesn't change. When the dollar goes down, your investment goes up. When the dollar goes up, your investment goes down. It is an inverse relationship.

For several years now, the US dollar had been dropping and those who had foreign investments benefited from the US dollar's fall. Since the recent chaos, the US dollar has been rising. That is making the stock market downturn worse for those who had foreign investments.

Hence, the yearly return (three-year? five-year?) for the Mexican stock market was 27% but after you took into account the recent strengthening of the US dollar, the return was only 12%.

Yours in investing,

gmbrldx

 

[Mastema]

You started an interesting topic, MikeDude.

If you were ever given under 10 pesos per dollar in the last few years you were possibly being ripped off. Check the yahoo finance charts for the US Dollar / Mexican Peso charts. For the past 5 years the rate has been between 10 and 11.5, usually between 10.5 and 11 -- until the last few months.

If you were given substantially less, then there are two reasons. One is that you were charged a premium (usually several percent only) to avoid having to change a small amount at an inconvenient hour and possibly in a less than secure location. That is one thing -- and legitimate. If underpaid during the day, on a larger amount of money, in a town near the border, then you were ripped off.

The current worldwide economic condition started a "flight to security." Despite what US citizens may feel, their currency is the currency of refuge. Don't believe me? Check out the yahoo finance chart that compares the Euro and the Dollar. (The Euro went from a high range of 1.5 or 1.6 to the Dollar to its current range in the 1.2 to 1.3 range.) That is a significant drop for a major currency in a time of "turmoil" and insecurity. Ye Olde Peso Mexicano arguably is more stable than the Euro, if you look at the trends over time.

The spread between the buy and sell price for dollars is usually the smallest (the best situation) near the border. I have seen the spread usually around 0.1 pesos in the city centers during the business day. (For example, 12.0, 12.1.) Travel down further into Mexico and the spread increases. Try changing the same dollar in San Felipe, the spread will be two to four times as large.

The dollars will remain "strong" for a while, as it was "weak" for a while.

And to add some hopefully helpful advice: stay away from "street currency traders." There is a lot of fake Mexican and US currency circulating. There is a "supernote" $100 US bill that is circulating in Mexico and the casas de cambios look for it. There are also some 50 and 20 peso notes that are fake too, prompting the Treasurer of Mexico to print those denominations on plastic instead of paper. Check the feel of those notes (with issue dates more recent than 2002) and you will feel plastic, not paper.

US citizens/dollar holders are the lucky ones, even though they don't think that way necessarily. That is understandable, most live in their country and do not have a chance (or the time) to see economic conditions elsewhere. Trust me, there is a reason for the strength of the dollar long term, in the past, and in the future. Mexico's currency reflects in large part the strength of its oil reserves, but as previous posters have noted, it is beset with longer term loss of value that outstrips the Dollar by a mile. That will slowly change, but in my opinion, not fast enough.

Trade your money during the day at a casa de cambio if your ATM rates hurt you. Or get an ATM card with a bank that charges less for the service of withdrawing/converting currency. Just don't withdraw from an ATM during the night time unless in a super market -- where there is some semblance of security.

Walmart is a good option if you can find one, there are ATMs near the customer service counter. Also Walmart will post their conversion rate (which sometimes is better than casas de cambio). Buy somethings with a large bill. Usually you will get all your change in pesos at a decent rate.

That information should help.

 

[thorn105]

Here is a peso trip report I wrote on another forum so I might as well put it here too as the strong dollar compared to the low peso has been the subject of much discussion.

Another thing about my trip to mention for this site in particle. I didn't see any drug lords, kidnappers, or even corrupt TJ cops. To me TJ is as safe as ever even more safe, since the TJ cops seem to leave mongers alone espeically at the taxi drop off zone. It was a busy Friday night, and lots of mongers from the US and locals packed the bars especially AB, Tropical, Hong Kong, Chicago club was the only dead bar.

_____________________________________________-

I was reading in "Fortune" that if you have put your pesos under your mattress twenty years ago and took out the money today that you would have lost 90% of the value of that money! But by the same token if you would have put that money in the Mexican stock market exchange( Bolsa) you would have got a yearly 27% return in peso, and something like a annualized 12% return in US dollars( Not sure what they meant by last statement, but I have enjoyed double digit growth for years in Mexico with a few stocks pushing 50% and above some years) If you could believe the peso is suppose to to be one of the more stable currencies?

I took a rare trip to TJ on Friday Halloween night because I was due and I decided to use pesos as I really haven't did that for the last two years now as I hate dealing with all those coins, never sure what makes a good tip in pesos, and really not that interested in saving a couple of dollars when the exchange rate was high 10 or 11 to 1.

I had three hundred with me so I exchanged $100 dollars for about 1250 peso. Damn I already forgot the rate, but it was about 1230 buy 1270sell?( you get a good chunk taken out just for exchanging your money) I exchanged money on that so-called dangerous street Articulo 123. I'm surprised I'm here to today to talk about it! When I got to the "Enva" hotel I was on the lookout for mean looking scary Mexicans, but didn't see any. Whenever you exchange money and don't already know what you should get, you get the feeling if they are cheating you. So at first I thought maybe I should get more money, so I had to try to figure it out, and then told myself it's sounds about right.

Before I exchanged my money I bought a Levitra which normally late at night cost me high $12 dollars -$13 dollar, but only cost $11 dollars.( the exchange rate working without exchanging money)

I went to Hong Kong and they had buy a beer for $3 dollars entrance fee. All the gringos and Mexican-Americans are paying with dollars. I bring out a 50 pesos and the fucker takes my whole 50 pesos and gives me a beer. I tell me, "hey where is my change?" and then say fuck it, give me my pesos back and here is $3 dollars.( 50 pesos is worth almost $4 dollars!) I'm a little bit disappointed that more girls aren't dressed up for Halloween in sexy outfits,so after that one $3 dollar beer I head over to Bar Tropical. ( AB was packed and it did seem like Halloween there, Hong Kong was so-so, and very little girls dressed up in the other bars like BT and LC)

At Tropical I keep my eyes open for this ex-monger on this site who tells me he goes weekends, claims I'm afraid of him and met him before, but that when I found out it was him, got real quiet and sunk in real low in my chair( pure bullshit), and he likes to tell others what he is going to do with me when he catches up with me. So I wanted to say hi to this guy, that I call 'Poser' but he wasn't there. I did see some second tier mafia gang members, enjoying each others company as usual with no girls.

I buy a drink with 50 peso, and I get all these coins, so any savings I made I gave it back, letting the mesero keep all of it. I didn't see any new talent so I picked a chica I did before. She didn't ask for any money upfront, so I just gave her 600 pesos, she said that's OK because she knows me. So I felt bad, and gave her another 100 peso as a tip, but she would have took the 600 pesos no problem. ( 700 peso is about $55 dollars. her drinks and hotel I paid in dollars because only had $100 dollars in pesos)

I go out into the street and see a few hot street walkers, and a few of them seemed to have padrote like dudes hanging around them. One just got through talking with her slimy padrote so I go up to her and ask her if she goes to the room. She says yes, do you have a hotel and I charge $80 dollars! $80 dollars for a street walker? She said she works at " Cabana" something? Must be that newer bar on the corner? She was just going to work, and that's why she wanted $80 dollars. Now I got to check out that bar, this girl was HOT, but I'm not paying $80 dollars when she is walking in the street and has a padrote.

Later I go looking for SGs and find one way out west of Articulo 123 about a 1/2 block before the trannies start. So I pick her( Patty), and ask why she works over here instead the alley and she says she doesn't like it over there. So I tell her I'm going to have to check her pussy to make sure she isn't a man, and I do a little inspection and she just laughs. She tells me it's going to be $20 dollars. She gives me a little hand job, and then mish with lots of action, and surprising she asks to turn over for doggie. When it was over I ask is 200 peso OK, and she said yes. Again I felt a little guilty because most SGs would charge about 30 dollars what she offered sin-ropa different positions and paying after, not the equivalent of $15 dollars I paid her.

I still have peso left over to go to the taco cart on Niٌos Heroes and give the guy 100 pesos for 3 tacos, and he gives me 150 pesos and change back! I'm already walking a few steps away and then I realize he made a mistake and thought I gave him 200 pesos instead of only 100 pesos but I keep walking, saying to myself fuck it....let me play the part of the ugly American today!

I then jump in a taxi Libre and the guy wants to know if $5 dollars is going to be OK with me, so I tell him I'll give you 50 pesos, which is still a good tip for you, and he says OK. ( I don't mind as long as they ask)

So I did save a little bit of money using pesos. Where I got taken is changing the money in the first place, especially if you change it back in dollars, your going to lose something. At Hong Kong they would have taken me if I used Pesos. The girls didn't seem to mind me using pesos, but these were real nice girls, and not the sharks at AB who I believe will still put up a fight for more money? Although it's a recession or near recession in both the US and Mexico that doesn't always mean just because there is less business......that the girls are going to lower the price....often times they do the opposite and raise their price!

 

[karen]

The peso today was at 12.96 ,look it up on peso converter

 

[Johannes]

There is one small office when you walk towards the hill side behind the Alley. The sign I saw was 12.50/13.50. With the rate changing on a daily basis, who knows what they are posting on an hourly basis ? The sign I saw was around 4 PM in the afternoon on Sat.

 

[clontarf1002]

It may be a good time to check carefully what are the conversion rates charged at the local restaurants and other bussinesses!!

 

[Ellisia]

hey mikedude i was in TJ sat. and sun. the most i seen was 11.60 where did you see these high rates?

 

[Pompal 09.]

I see you are not use to see this discrepancy.

It's so us Mexicans won't play around trying to gain some extra pesos with the floating currency.

It also means that the Peso will be stable and falling between 12 and 12.50 pesos per dollar (buying).

Now that the stock markets are again the toy of capitalism, the US currency will be forgoten as a shelter.

 

[Bogey]

The exchange rate that I quoted was actually from these two currency exchange offices located right in the middle of zona. One right next to the police station and one located a little up towards the hill side. The rate that you originally quoted sounded a little odd to me. I know there is discrepancy between sell/buy in every currency but 13.5/11 is way too much gap. I am not saying your info is incorrect but seems a little odd.

 

[Garlands]

Please Mike.
Am quoting OFFICIAL MEXICAN BANK exchange rate.

Where were you getting that rate?

Might be, Casa de Cambio or any run of the mill border Jose that wants to hoard Pesos, which by today, they are loosers.

Casa de Cambio figures are not official.

Today Monday, last figure I saw, the Peso stood at 12.55 per dollar, buying.
11.05 per dollar, selling.

OFFICIAL EXCHANGE

But you are totally right.
The best deals are in Pesos.
Always deal in Pesos.

 

[cody g]

I am not sure where you got this info. I was actually in TJ this past Saturday. It was 13.50/12.50 not 11 pesos. The hotel Leyva was charging 11.5 pesos per dollar and I showed the current rate to the desk person and he just nodded but didn't adjust their rate. These guys are ripping us off. I bet that if the peso gets strong, they will definitely raise the price but not the other way around. I am certainly not a cheap charlie to argue over a few dollars but it's all abut being fair. I don't see a reason why we should not pay in pesos when all locals do. It's all about taking advaneforum.xxxe of the market.

 

[wng]

I've never played that deceitful game of negotiating in dollars and then paying in pesos.

With SGs, I negotiate and pay in pesos.

With the right SGs, 200p goes a long way!

 

[~Mia~]

well, that is very, very interesting! I've traveled a bit and have never seen such a discrepancy in the buy-sell prices of a currency. This could be the ideal time for the emergence of a currency exchange black market!

 

[WIL]

With the slight detail that the exchange rate for selling dollars is is 11 pesos Dll-Peso

You only get 11 pesos for 1 dll exchanged.

You BUY at 13.50 pesos for each dollar.

Selling is low, so regular folk won't speculare with the currency fluctuation.

 

[my dog joey]

That means i can buy me a house in Tijuana and have saved 30% in a week i love the stock market crash


CASH AND GOLD IS KING

 

[Stu]

People are scared, so they are all buying dollars, so the price slides.
When shit hits the fan, the best place to be is US Treasuries. Also, oil is sliding in price because traders realize there will be nobody to buy it. Its going to continue to slide until we stop talking about alternative energy, if the sons of ishmael are smart. Watch China die on the vine because the US is watering the tree. China is about to get hammered. I think it might be a nice time next year to finally take that trip to Macau I've wanted to try.

 

[Noe diaz- weaver]

I think the key question to ask here is- has the purchasing power of the peso declined recently with this devaluation? if it has not, why not try to pay the 600 peso rate? I mean, when local guys approach the chicas, do they get their quotes in dollars?