Value of Peso Affects Valley Businesses
President Elect Donald Trump’s position as the future leader of the United States has created instability in the Mexican currency.
The impacts are being felt not just in Mexico, but in border communities like the Rio Grande Valley.
The decline of the Mexican peso continues. Today it’s nearly 20 Mexican pesos to the American dollar. While this may mean more Americans shop more in Mexico, it is having an impact on the Rio Grande Valley.
A local shop owner who sells dresses tells us, “For example, we used to sell about 100 dresses. Today that number is around 60 or 70.”
As a border community, impacts on the Mexican Peso affect us. While the declines were first attributed to the fall of oil prices, the latest decline is attributed to the results of the 2016 presidential election. Experts speculate that Donald Trump’s position as president elect has caused instability in this currency.
This could be said due to the president elects’ threats to rip up a free trade agreement with Mexico. Other factors such as tax money sent home by migrants to pay for building a wall on the southern U.S. border had an effect as well.
Neighboring communities on the Mexican side of the border may reconsider their spending habits when visiting the United States.
This could mean less shopping, less tourist attraction visits, and fewer investments from Mexican customers.
One shop keeper at an exchange rate business says , “Sometimes there’d be 15 or 20 customers. Today we’re not even seeing 10.”
Every year Mexican shoppers add millions to our local economy.
This is not the first time the peso has dropped. On January of this year, the peso dropped to 18 pesos per dollar. Then it was considered a record low.
Today the valley is has fewer customers on the streets, but visitors will likely watch their expenses closely.
It’s unclear whether the Mexican peso will regain value in the near future.