México to lift dollar bank deposit limits

President Enrique Pena Nieto said on Friday he would scrap limits on companies making dollar deposits in cash that were imposed by the previous government.
http://www.reuters.com/article/2014/09/12/mexico-dollar-idUSL1N0RD21120140912

Anything to help the drug trade and money laundering.

Interesting that the article said why the limits had been put in place but not why they are being removed. This leaves readers to assume it was to make money laundering easier again. Is it possible there were unintended consequences to the law or that it was ineffective? It was poor reporting--or a reporter afraid (or unable) to tell the whole story.

Here is a more detailed report in Spanish:
http://yucatan.com.mx/mexico/gobierno-mexico/mexico-elimina-restricciones-al-uso-de-dolares-a-empresas

Lady Otter Latté wrote:Interesting that the article said why the limits had been put in place but not why they are being removed. This leaves readers to assume it was to make money laundering easier again. Is it possible there were unintended consequences to the law or that it was ineffective? It was poor reporting--or a reporter afraid (or unable) to tell the whole story.

Tourism is a major source of income for Mexico. The tourism industry was greatly affected by the dollar limits.  

Americans were restricted on the amounts of dollars to convert to pesos or just wanted to pay in dollars.  If you followed the old law your business suffered.  Businesses were not going to turn away sales because a gringo wanted to pay in dollars.  Some smart businesses owners were stockpiling dollars and complaining about not being able to deposit the cash.

There are still quite a few Americans that don't like plastic money (security issues or big brother tracking your life) and prefer to pay in cash.

Not everything is about the drug trade and money laundering.

Playaboy wrote:

Lady Otter Latté wrote:Interesting that the article said why the limits had been put in place but not why they are being removed. This leaves readers to assume it was to make money laundering easier again. Is it possible there were unintended consequences to the law or that it was ineffective? It was poor reporting--or a reporter afraid (or unable) to tell the whole story.

Tourism is a major source of income for Mexico.  The tourism industry was greatly affected by the dollar limits.  

Americans were restricted on the amounts of dollars to convert to pesos or just wanted to pay in dollars.  If you followed the old law your business suffered.  Businesses were not going to turn away sales because a gringo wanted to pay in dollars.  Some smart businesses owners were stockpiling dollars and complaining about not being able to deposit the cash.

There are still quite a few Americans that don't like plastic money (security issues or big brother tracking your life) and prefer to pay in cash.

Not everything is about the drug trade and money laundering.

"Not everything is about the drug trade and money laundering."

You're correct there is also prostitution, tax evasion, extortion etc'

.

Not everything is about the drug trade and money laundering.[/quote]

"Not everything is about the drug trade and money laundering."

You're correct there is also prostitution, tax evasion, extortion etc'

[/quote]

Touche