There are different opinions regarding the dollar’s downward devaluation trend: On one hand, we have people who earn dollars, and on the other side, we have those who work in Mexico and spend on this side of the border. While it benefits many, others are being negatively affected.
“We were used to going out there and getting so much for our dollar, it was a little bit different this time,” says Andrés Guzmán, who was born and raised in the United States to Mexican parents. “And like many people who live close to the border, we enjoy traveling to Mexico because it had been much more affordable than traveling in the United States, until now.”
“We were just kind of having to watch what we spent and just kind of being careful of what we are spending out there,” Guzmán added.
For years, Guzmán and his family de él have traveled through Mexico, visiting tourist destinations such as Cancun and Los Cabos, even just crossing the border to Tijuana simply craving tacos, as many of do.
Recently, Guzmán visited the town of Tequila, in Jalisco, and it was there that he noticed the variation of the dollar against the peso.
“People are, a little bit, stopping,” said Maricarmen Castellanos, who is with Probien Real Estate Company in Tijuana. “They are waiting a little time so their dollar could be stronger again.”
Many aren’t waiting, though, and are spending more now to make the same purchases. The strengthening peso strengthens and weakening dollar is a situation not been seen for more than three years. It’s due, in part, to interest rates in Mexico, which are above 11%, but there is another factor in play, according to experts.
“The reason that the peso has been so strong lately it’s because of the hawkish politics of the Central Bank, which means they have been raising the interest rate,” economist Regina Treviño told NBC 7 Responds.
Trevino says Bloomberg analysts expect the peso to begin to drop by the fourth quarter of the year, estimating that it could close the year a little higher, up to 18 pesos per dollar.
As for Guzmán, he said that “in future planning for vacations, we might not pick Mexico anymore just because we are used to getting a lot more for our dollar out there.”
Vendors operating in the areas most visited by tourists in Tijuana said they’ve seen fewer Americans this summer, and it’s affecting their sales.
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