Now might be the time to get extra pesos. Rate is $16.11.

This is for those who don't follow it.

And again it might be the right time to dump your pesos.

No, sumofabit, now you BUY pesos!

That is why it is speculation, G. It is now 16.1238, so we shall see.

Some are predicting it will go to 17 before topping out.

Wether you dump or buy it is speculation sumofabit.

Wether you buy or sell, now is a good time to have work done by Mexican contractors and laborers.

If you are USD based I agree Oncesubtle . I live in Pesos so to me now is the time to turn dollars into Pesos and spend Pesos over time. Do most long term folks think in dollars rather than in pesos? I am much better thinking in Pesos than talking in Spanish .

Z

brigitte wrote:Wether you dump or buy it is speculation sumofabit.

No shinola!

Some quick math shows US$5,000 turns into $77,000 even at a highly discounted exchange.

If it gets near $16.00, I'm going to jump in. Erika at MultiVa keeps track of the daily rate for her exchange; a good source.

And for sure with the contractors and any other labor based work.

You really are clueless, your opening post says it's $16.11. What do you mean, "If it gets near 16...."? It's been a good time to buy Pesos since last fall. Nothing has changed except the rate keeps getting better for us that live in a Peso world but keep our $ in the USA.

David: Among my faults, I make typos, sometimes transpose and do a poor job of proofreading. I was thinking $17.00

Just an FYI.......the peso isn't falling, the USD is rising. Many world currencies are down against the USD including the CAD which has reached lows that haven't been seen in 12 years. The CAD to the peso is the same as it always is, in and around 12 to 1.

Clueless wrote:David: Among my faults, I make typos, sometimes transpose and do a poor job of proofreading.  I was thinking $17.00

Why wait? Get it while you can!

CanuckBob wrote:Just an FYI.......the peso isn't falling, the USD is rising. Many world currencies are down against the USD including the CAD which has reached lows that haven't been seen in 12 years. The CAD to the peso is the same as it always is, in and around 12 to 1.

Exactly CBob.   People keep asking, "why is the peso falling?", when the question should be, "why is the USD rising?"
It's the only storm cellar, large enough to accommodate a lot of people during a tornado watch on a Kansas town with a bunch of houses on flat land.

People who already own dollars are just plain lucky, and are experiencing a windfall,  compared to those who have to buy them. 
The rest of the world will just keep trudging along as usual, unless you are buying a lot of products "made in the USA", or travelling there.

The good news for Mexico is that they should be picking up more tourism since the Canadians will be avoiding the US like the plague with a .75 cent dollar.

True enough AND Mexico gets more Pesos for their oil, remember oil is priced in $US.

Yes, and they will be selling those USD, trying to stabilize the peso if it drops much more.
Unfortunately the USD price of oil has dropped considerably so that won't be a big help in the future. Right now, Mexico is living a little large  because they sold a lot of petroleum on future contracts at a very good price, I think at around 75 bucks a barrel.

We just agreed that the peso isn't dropping so what do they need to stabilize??

They just don't want it to move too quickly. When it does they buy a few hundred million $US to slow it down.

David wrote:They just don't want it to move too quickly.  When it does they buy a few hundred million $US to slow it down.

You are correct David and Cbob, not to stabilize, that was a wrong word,  but to slow it down, but don't you mean they (Banco de Mexico) will sell USD?

They have a program in place that they implement when the Peso moves too fast. They sell $ from their substantial reserves. It's often mentioned in the Mexico News (online) and The News (English language daily from DF).

I see what you mean is "they buy a few hundred million $US (worth of pesos) to slow it down.

Yup. Supply and demand. They sell $US to "create" demand for the $Peso.