Currency Update: Mexican Peso

Today the Mexican Peso is trading at $ 12.38 MXN to $ 1 USD.


Recent economic news:

• Analysts lowered their forecast for growth next year to 3.46% (originally 3.52%)
• The Mexican economy grew 5.3% in the 3rd quarter (above projections of 5%)
• Mexican unemployment holds at 5.7% in October
• October remittances to Mexico rose 2.1% year over year

Weekly Currency Update: Mexican Peso

The Mexican Peso is trading at $12.30 MXN = $1 USD. 

Events in the Mexican economy:

• US Fed unveiled a new stimulus plan which helped strengthen the Mexican Peso
• Mexico's central bank governor, Agustin Carstens, announced he will not rule out cutting interest rates
• Many Mexican firms came out with strong 3rd quarter results this week

Weekly Currency Update: Mexican Peso

The Mexican peso is trading at $12.33 MXN = $1 USD. 

Some events this week/month that affected the Mexican economy:

• President Calderon said "Mexico is replacing Canada as the second largest exporter to the United States in non-energy products."
• Mexico's Central Bank lowers the inflation forecast for Q4 2010
• Cross border traffic is on the rise

Interesting article in The Economist this week :
Bringing NAFTA back home

Weekly Currency Update: Mexican Peso

Today the Mexican Peso is trading at $12.38 MXN = $1 USD.

Interesting/important news in the Mexican economy this week:

• Yesterday the Secretaria de Hacienda (head of Mexico's Tax Authority), said Mexico will see 4.8% economic growth in 2010 (it contracted 6.5% in 2009)
• Mexico's retail sales rose more than expected in August (4.4 % vs. 3.5% forecast)
• Mexican stocks almost ended on a record high yesterday
• Mexico's consumer confidence index climbed in September

An article you might enjoy:

In defiance of ceaseless violence, Mexico's economy flourishing

Weekly Currency Update: Mexican Peso

Today the Mexican Peso is trading at $12.39 MXN = $1 USD.

Below is an interesting article by Adam Thomson, in the Financial Times about Mexico's finances.

Startling transformation of Mexico’s finances

By Adam Thomson in Mexico City  (Financial Times)

Published: October 14 2010 13:31 | Last updated: October 14 2010 13:31

When it comes to emerging markets these days, it is not often that Mexico outshines Brazil. But this month, Latin America’s second-largest economy did just that as it issued the region’s first century bond as well as the largest amount placed with a 100-year maturity: $1bn.
There is little doubt that the milestone – achieved at a modest yield of 6.1 per cent – could not have happened were it not for record-low interest rates in industrialised countries and investors’ voracious search for higher yields.

To read the rest of the article please click here

Weekly Currency Update: Mexican Peso

Today the Mexican Peso is trading at $12.49 MXN = $1 USD. 

Some events this week in the Mexican economy:

-Mexico's stocks slipped early in the week on US jobs data
-Mexico will sell $1 Billion of 100 year bonds
-Mexico's consumer confidence level increased in September

Please notice the new currency application on Mexipreneur on your righthand side! 

Weekly Currency Update: Mexican Peso

Today the Mexican Peso is trading at $12.62 MXN = $1 USD.

According to Bloomberg, the Mexican Peso saw its fourth consecutive week of gains, which is the longest streak since March. 

The opposition party (PRI) is proposing a bill that would cut the value added tax (IVA in Spanish) which is currently at 16%.  President Calderon had approved the increase from 15% to 16% at the beginning of this year, but the PRI is pushing hard for a reversal of this increase.  Many experts suggest that such a move would mean confusion and suggest a weaker Mexican economy. 

Weekly Currency Update: Mexican Peso

Today the Mexican peso is trading at $12.64 MXN = $1 USD.

Some events affecting the Mexican economy:

-Mexican Peso hits 5 week high
-Industrial growth in China surged
-The European Union announced that it may grow twice as fast as forecast
-Mexico's jobless rate fell in August
-Crude oil (Mexico's 2nd biggest export) jumped 3.4%
-The US Fed said that it would provide additional support to bolster the US economy (largest importer of Mexican goods)

Currency Update: Mexican Peso

The Mexican Peso is finishing off the week at $12.95 MXN to $1 USD.

Some important news/events that affected the Mexican economy this week:

Mexico consumer prices rose .28 percent in August
Obama spoke out and said Mexico's drug war is not comparable to Colombia in the 80s
"La Barbie" was captured last week, which inspires confidence in Calderon's battle against the narcos
Mexico continues to draw manufacturing contracts away from China
Both auto output and exports were up in August compared to last year

Mexico Proposes Tougher Limits On Cash Transactions

In an effort to curb money laundering, President Felipe Calderon is proposing tough new laws that prohibit cash transactions for items exceding $100,000 MXN (equivalent $7,700 USD). 

It is not uncommon for drug lords to spend large amounts of cash when purchasing homes, cars, and other luxury items.  In fact, around 75% of transactions in Mexico are cash transactions.

One possible problem seen is that the limit on dollar and cash transactions will hurt legitimate businesses, especially near the border where transactions are conducted in both currencies. 

The Association of Bankers in Mexico has also proposed a "black list" of suspected criminals that will allow them to verify identities before opening up a bank accounts.  While this seems like a great idea, how will they account for the fact that many criminals use several aliases (and have "official ID" to back it up)???

Weekly Currency Update: Mexican Peso

The Mexican Peso is currently trading at $12.96 MXN = $ 1 USD. 

Some events that affected the economy/business environment:

-Sales of existing homes in the United States fell sharply last month

-Mexican retail sales rose 1.5% in June (year over year)

-Slowing US Economy will curb demand for exports from Mexico

-Mexican's tourism sector is starting to see a comeback (35% increase in international passenger traffic in June)

Weekly Currency Update: Mexican Peso

The Mexican Peso is trading at $12.74 MXN = $ 1 USD.

Besides Mexicana airlines declaring bankruptcy this week, here are some other important events:

• Mexico's auto production was up in July
• The US Fed announced it would reinvest funds from maturing bonds in order to keep interest rates low
• Mexico and Central American countries advanced in their second round of talks to create a free trade agreement
• Industrial production in Mexico increased 8.4% in June

Weekly Currency Update: Mexican Peso

Today the Mexican Peso is trading at $12.52 MXN = $ 1 USD.


Events this week affecting the Mexican economy:

• US employment data (more jobs added in July) lifted the peso to a five week high
• US stocks were up, causing peso to strengthen
• According to Hacienda, 559,700 new jobs have been created in Mexico in 2010, over 60% of them permanent

Weekly Currency Update: Mexican Peso

Today the Mexican Peso is trading at $12.72 MXN = $1 USD. 

Events affecting the Mexican economy this week:

• Durable goods orders in the US fell in June
• Auto production in Mexico has picked up
• The peso hit a 2 month high this week due to the fact that economic growth accelerated faster than expected (grew 8.9% in May, while 8.5% growth was expected)
• Cemex posted weak second quarter earnings, but investors were hopeful because for the first time in several quarters US cement volumes should grow (around 8-10%)

Weekly Currency Update: Mexican Peso

The Mexican peso is trading at $12.81 MXN = $1 USD today.

Important events this week that affected the peso:

• Imports of copper fell for the third month in a row, which may mean that global economic recovery is slowing down
• Soft US retail data caused Mexican stocks to suffer this week
• Mexico's auto production more than doubled last month, setting a new record
• Slowdown in US manufacturing
• The Fed cut the growth outlook in the US, which could affect the Mexican recovery which is based on exports to the US

Weekly Currency Update: Mexican Peso

The Mexican Peso is trading at $12.83 MXN = $1 USD.

Events in the Mexican economy this week:

• Wal Mart de Mexico (WALMEX) same store growth (4.7%) was lower than expected (5.5%)
• Consumer prices fell .03% in June from May
• Mexican Peso bond yields decline
• Hiring in the US increased a rate lower than expected

Weekly Currency Update: Mexican Peso

The Mexican Peso is trading today at $12.71 MXN = $1 USD.








This week's important economic events:

• Declining sales of US homes sparks fears that recovery in the US (and subsequently Mexico) could be slower than expected
• China relaxed the Yuan's fixed rate
• Mexican stocks end higher, led by America Movil and Bimbo
• Recovery in Mexico bank lending supposed to see double digit growth in 2010

Currency Update: Mexican Peso

The peso is trading at $12.53 MXN = $1 USD today.

Events that affected the peso this week:

• Stocks in the European Union were up this week, easing worldwide fears
• The Central Bank of Mexico held rates steady, said that inflation was "benign"
• Fall in US housing starts
• Consumers prices fall more than forecast

Weekly Currency Update: Peso

The Mexican Peso is trading at $12.78 MXN = $1 USD.

Events this week that affected the peso:

• Lower consumer prices tumbled more than predicted
• Increased crude oil prices
• Speculations that the Central Bank may not increase interest rates
• Threat of debt crisis spreading further across Europe

Weekly Currency Update: Peso

Today the Mexican Peso is trading at $12.77 MXN = $1 USD.  This has been the worst month since February 2010 for the peso.   
The events that have affected the peso's value this week include:

• Weaker than expected US economic data (as they say, when the US gets a cold, Mexico gets pneumonia!)
• The report that China is reviewing its Euro bond holdings
• The European debt crisis

In a related note, Hacienda (Mexico's IRS) has placed a restriction on dollar cash deposits in Mexico.  This has created a parallel black market for dollars, which can pose a huge threat to the economy.  The restriction was put in place in an effort to curb money laundering.