Big, fat raise

new-imageCAN YOU HEAR the Gringos cheering?

When I moved south in the year 2000 the peso-buck exchange rate was about 10-1.

For every buck you’d get 10 pesos. This made it easy to calculate how much you were spending in “real money.”

It stayed that way for years, spiking up to 12 on occasion and even dipping a bit below 10 now and then. Some years later, it would rise to about 15 or so, but that usually didn’t last long, a week or so, and it would fall back to the 12 range.

A couple of years ago, it started going up and up, and nowadays, depending on the bank, you can get 20 pesos for a buck.

Here’s what that means for those of us whose income comes from above the Rio Bravo: a 100 percent pay raise. Well, for those who’ve been here since 2000, that is.

While this is not good for Mexico, it is very good for those who live on dollars that sail south electronically.

And it’s very good for Gringo tourists.* If you’ve been dreaming of a Mexican vacation, phone your travel agent.

Of course, prices have increased since 2000, but they sure have not risen 100 percent, so we’re far ahead of the game.

Some people attribute this situation to Trump’s rise, but it started before that. Being stupid in these matters, I don’t know why we got this big, fat pay raise, but I like it.

And it’s easy to calculate again how much I’m spending in “real money.” Just halve the 10-1 calculation and voilá!

* * * *

* But it’s bad for Mexican tourists in the United States, just one more reason for me to stay put. Both my bank accounts are Mexican. Pesos, not bucks. Pesos are “real money” now.

17 thoughts on “Big, fat raise”

  1. Those people who are addicted to imported food products and goods will pay more. Made in Mexico, not so much unless they use foreign components in production.

    Like

        1. That remains to be tasted and compared. I made some chocolate chip cookies this morning, using Mantequilla Gloria, and they seem all right, but perhaps not as “buttery”. But they are o.k.

          Saludos,
          Don Cuevas

          Like

  2. Great idea! We will be there exactly one month from tomorrow!

    If you feel like heading to Puerto Vallarta, Felipe, we’d love to buy you and your señora lunch!

    Liked by 1 person

    1. Mike: Alas, we won’t be in Vallarta at that time. I do appreciate the offer, however. And, as I mentioned, money-wise, it’s a great time to visit Mexico. Encourage others to come, Mike.

      Like

  3. In response to Carole’s observation that goods imported from The States will cost more, that is true if it is viewed relatively. If your original revenue is US Dollars, it should be a wash. That is certainly true here. The peso price of imported goods has tracked the exchange rate with the dollar. I am still paying the same amount in dollars; it is simply more pesos.

    Like

      1. I buy some imported food. But mainly from France, Italy, and Greece — with the occasional purchase from The States. Mexico is great that way. Surprisingly, Mexican pickled ginger if far superior to the Chinese import version. At least, here.

        Like

  4. I agree that the exchange rate benefits Gringos receiving their income from the U.S. But it is also good for the Mexican trade balance. It makes Mexican exports cheaper and sales increase. This is fine so long as inflation does not outpace the exchange rate. It also makes those dollars earned by Mexicans in the U.S. and sent home to Mexico go much farther. Nonetheless, I think everyone would just prefer stability.

    Like

    1. Carlos: Some positive aspects for my new paisanos! That’s good. But I hope this does not inspire more “Mexicans in the U.S.,” i.e. illegal aliens, to head over the border. That would not be nice.

      Like

    1. Carlos: Oh, Lordy, you’re right. And I think we already have quite enough as it is. I know that’s the case here on my mountaintop where when I moved here there were about 40. Now there are 300-400. Nobody knows for sure. Time to build a wall!

      Like

  5. Moving to Mexico is a great investment. There is a great return on the dollar. The Social Security (COLA) Cost of Living Adjustment is a total joke. The U.S. has the most expensive medicine in the entire world.

    The value of the USD has increased 17% in the last twelve months.

    Like

Comments are closed.