Financial Archive

The Mexican Peso and You

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pesos and dollarsThe strength of the US dollar ($USD) against the Mexican Peso ($MXN) has been the focus of a great deal of attention over the last year. Plenty of theories have been set forth to explain it, ranging from the cratering of crude oil and other commodity prices to the rhetoric of US Republican President Donald Trump. Conversations about the exchange rate among certain groups on social media exploded last year, while a cursory glance at Google web search trends for “Mexican peso” indicates that over the last 5 years, interest really began growing from 2015 into 2016 with large spikes in April and November of last year. Needless to say, there’s good reason for all the attention the topic has been getting. The exchange rate between the $MXN and the $USD (or other currencies such as the Euro (€EUR)) affects multiple interested parties, from Mexicans both inside and outside of the country to travelers to expats residing in Mexico to multinational corporations and governments looking to do business with Mexico. Why had the $USD/$MXN exchange rate risen so high, and will the dollar continue to stay strong against the peso? Or, will the peso continue to recover as it has been doing recently? In order to answer these questions, we must look at the behavior of both the peso and the dollar separately as well as in relation to each other. It’s important to gain the best possible understanding of the situation, and we’re here to help. 

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Guadalajara, Mexico, Is a Leading Portal for Exporting Goods to Trading Partners via Air

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air freightAccording to ProMéxico, the trade and investment arm of the Mexican government, Guadalajara has led Mexico in handling the country’s exports via air 5 out of the 7 years from 2007 through 2013 (complete data for 2014 is still unavailable), as indicated by the value of goods passing through customs (in millions USD). Guadalajara has only fallen second to Mexico City twice, in 2011 and 2013, and then not really by much. This for a city that is by some estimates but a quarter to a third of Mexico City’s size in terms of population. Monterrey, in Nuevo León, is usually a distant third. As for exports by road or by railroad, a massive collective amount of goods travels to trading partners via these means through Nuevo Laredo, Tamaulipas, which has led the pack in both categories year after year. Ciudad del Carmen, Campeche, has been the annual leader where it comes to shipping goods by sea. These are just some stats to keep in mind as you contemplate international business with Mexico. See the following infographic for all the figures.

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So, I’m Traveling Abroad – How do I Pay for Things?

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CurrencyWithout fail, some of the first questions we get from our friends and family when they are about to visit are these: “So, what’s the deal, should I take out some cash and exchange it for pesos? How do I pay for things on the trip?” Indeed, one of the first orders of business, whether you’re coming to Guadalajara for a visit or for an extended-stay, or are perhaps even moving here, is to address how you’re going to financially cover yourself. We’ll be addressing that here in this article. Additionally, we’ll fill you in on the lowest-fee ATM we’ve found in the city, the best U.S. checking account we’ve found for avoiding ATM fees and foreign currency transaction fees even while abroad, and the best U.S. debit and credit cards for use abroad to avoid foreign transaction fees.

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