Good time for Mexico Travel ... Exchange Rate is UP!
The Peso/Dollar exchange rate has been going up sharply the last few months.
Big jump up just from a year ago:
About 12.5 to 13 per dollar a year ago.
NOW: about 15.0 to 15.5 per dollar.
And the exchange rate appears to be continuing UP ... Where is this going?
If this continues ... watch for a total devaluation and currency change. This has happened many times before in Mexico ... at times with disastrous consequences for those heavily invested in Mex. Pesos.
Things are more stable now ... with more controls in place ... but who knows? After all, it's Mexico!
I was there in '95 when the last "Crash" happened. One day, it was about 3.2 per dollar, next day, went to 10 per dollar and a whole new currency was introduced (pesos nuevos) ... and in a few months the "old" money was worthless. (coins too!)
The insiders were ready, put all assets into dollars, then came back in after the devaluation and bought up everything CHEAP. They made Millions ... But millions were burned.
For now, the 15 to one makes Mexico a pretty good deal for travelers ...but in reality this barely keeps up with Mexico's inflation ... about 10% to 15% per annum, depending who you talk to.
Have fun!
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