Mexico’s peso hits 13-year low; good for tourism
The economic crisis north of the border is having an impact on Mexico’s peso, with the currency falling Jan. 30 to its lowest level in 13 years.
The peso fell 20 percent last year, according to a report from Bloomberg, then continued heading south until it reached a record low of 14.4484 per U.S. dollar at the end of January.
The news service said RBS Greenwich Capital Markets in Greenwich, Conn., is predicting another 3.8 percent drop by June 30.
A cut in oil prices and exports also is impact the currency, marking the worst performance for the peso since the “Tequila Crisis” in 1995′.
Zurich-based UBS AG, a major foreign exchange trader, is predicing the peso could hit 15 to 1 by year-end.
Such a fall makes the U.S. and Canadian dollars worth far more in Mexico, giving visitors added buying power. Because of the rapid decline, it’s likely that the actual exchange rate offered to tourists will vary widely throughout Mexico and even from merchant to merchant in a given community.
Take along a calculator and keep an eye on the current rate when making purchases and getting change.
Tags: exchange rate, Mexico, peso, travel
