In January 2016 someone told me that by the summer the peso would be in the 18 range. I thought that was probably not possible, BUT, it is reality. It has been for about ten days.
Today the peso is 18.35 to the dollar. Now, if you go to an exchange house or bank that will not be what your exchange rate will be unless you're a prime customer. The bank makes money off this situation.
But, for us "foreigners" as the Mexican government refers to us, it is a good day for us. For our Mexican neighbors, not so much. Obviously their pesos buys less.
When I moved here the peso hovered between and 8 and 9 pesos to the dollar. In essence, it is as though somehow I've gotten a pay raise.
Except for the fact that when the peso declines, the prices go up to make up for the decline. Still in all, it is
amazing how much 200 pesos (about $10USD) will buy in Mexico.
I know when I go to Texas this coming week that I will suffer sticker shock the whole time I'm there.
Whether I"m dining out, shopping or whatever, I'll inwardly be cringing at the prices. Hence I'll only
buy what I need to bring back. Things such as food products that I use in cooking that I still cannot
get in Mexico along with some US fabric for sewing for a project that I want to make. Those things
among a few others.
Possibly the low peso might have something to do with all the new manufacturing plants that are opening near San Miguel. Although I doubt it because those projects are typically a 3-5 year project in the works before fruition. Three new plants here are from Germany, all clean manufacturing for the aerospace and automotive industries.
I noticed the last time I was in Guadalajara that there were welcoming flags and billboards that welcomed Lufthansa to Guadalajara! At that time there was talk of non-stop flights to Germany. Now that makes sense as I've discovered that Germany is investing heavily in Mexico.
Add to that, Hyatt announced a flock of new projects in Mexico. One, an "extended stay" hotel in Mexico City, will be located adjacent to the ABC Hospital facilities. This hospital complex was just named one of the top ten in the world along with the Texas Medical Center which was named #1. It's good to know that there is a medical facility of that stature in Mexico.
Mexico is changing daily. Foreign investment has surged over the last fifteen years and I imagine a day when it will be hard to travel the back roads and find indigenous villages that have not been impacted by the outside world. Thankfully over forty years ago, I was able to visit many of those magnificent places.
It certainly, IMHO, is no longer a ""third world" country!.