COVID sure drove up the value of the dollar fast. Up to 25 peso per dollar, people hanging on real tight to George. I find myself yearning for an international incident, so my dollar goes up in value in my next trip south of the border. One that doesn't infect the lungs.

Don't hold your breath waiting for an oil-producing nation's currency to devalue. Mexico isn't Venezuela by any stretch of the imagination. Any international incident, especially in the Middle East, is only likely to drive up the cost of oil, something the RePUKElicans' puppetmaster Putin wants badly, which would also benefit Mexico.

Mexico has some issues. Has to import about 6 billion worth a year.

Another tid-bit, "in 2022, the United States imported over 637 million barrels of Mexico’s heavy crude and exported over 1.8 billion barrels of refined petroleum products to Mexico.
https://www.trade.gov/country-commercial-guides/mexico-oil-and-gas

"We are seeing a very strong growth in the trade deficit of Mexico and the United States. We are importing much more than we are exporting, we are seeing that tourists are having difficulties visiting our country."

Currency fluctuations and their ramifications are subtle and complex. A weaker currency does make it harder for tourists but it makes it easier for those businesses wanting to sell to the country whose currency has appreciated.

"A weaker currency does make it harder for tourists but it makes it easier for those businesses wanting to sell to the country whose currency has appreciated."

Yes and no, maybe or maybe not.
Basic answer: The gain in the value of the country's currency that has appreciated, probably was wiped out by inflation. It's a "wash".

Inflation has been an issue worldwide thanks to that stupid microbe Covid. The locals would only benefit from a stronger peso if they were buying goods and service from the United States. Thus, their peso would go farther if they were to vacation in the States or buying something directly imported from the U.S. Goods and services emanating from Mexico would not be affected. This is why their answer to your question was a resounding, "No!"

As the original article stated, Mexico is importing more goods and services as a result of the stronger peso. Mu guess is this is because of the growing Mexican economy and the ongoing foreign investments in Mexico, often call "nearshoring." Covid was a wake-up call for the multinational companies who had always looked to the lowest cost producer, no matter where they were domiciled. They counted on the ability to move goods around the world with ease. The virus showed them who was actually in charge.

COVID sure drove up the value of the dollar fast. Up to 25 peso per dollar, people hanging on real tight to George. I find myself yearning for an international incident, so my dollar goes up in value in my next trip south of the border. One that doesn't infect the lungs.

Don't hold your breath waiting for an oil-producing nation's currency to devalue. Mexico isn't Venezuela by any stretch of the imagination. Any international incident, especially in the Middle East, is only likely to drive up the cost of oil, something the RePUKElicans' puppetmaster Putin wants badly, which would also benefit Mexico.

http://docpoindexter.com

"We are seeing a very strong growth in the trade deficit of Mexico and the United States. We are importing much more than we are exporting, we are seeing that tourists are having difficulties visiting our country."

Currency fluctuations and their ramifications are subtle and complex. A weaker currency does make it harder for tourists but it makes it easier for those businesses wanting to sell to the country whose currency has appreciated.

4/13/2024

@Padrino

Re ---> "A weaker currency does make it harder for tourists but it makes it easier for those businesses wanting to sell to the country whose currency has appreciated."

Yes and no, maybe or maybe not.
Basic answer: The gain in the value of the country's currency that has appreciated, probably was wiped out by inflation. It's a "wash".

Example: What used to cost US$10.00, that the purchase cost 200 pesos for when the USD was at 20 (using round #S to simplify my commnet), SHOULD now cost them 170, right? Probably not, Why?
Most likely with the recent high percentage inflation rate, generally between 10% - 40%,
that $10.00 item, now cost $12 - $13, or 204 - 221 pesos!

IF someone, for example has a fixed dollar payment, that is NOT affected by inflation, like a mortgage, then YES, they'll pay less pesos for THAT, and the "Super Peso" is a benefit for those who have pesos as their source of income.

Aside from that, I have asked several locals , if they have benefited from the current Super Peso at 17, vs the 20 per dollar X Rate.
The general response is NO, they have not particularly benefited.

Here's some local and general price inreases I've seen:
laundromat to 75 from 66.
laundromat to 100 from 75.
3 scoops premium ice cream to 75 from previous 60 (WAS a GREAT deal)
Dr. consultation to 800 from 600.
Small pizza to 165, from 120 - 130 range.
Sub sandwich to 150 from 100 pesos.
Doraditas to 19, from previous 15.
5,000 pesos ATM cash just paid $305.28 16.3784 X $1.00
way up from previous years 250-255.00 for that same amount of pesos.
copias to 2, from 1,
(though at López Impresores, they're still holding at 1 peso per copy & Impresiones para 1.50 ☺)
List goes on and on

"We are seeing a very strong growth in the trade deficit of Mexico and the United States. We are importing much more than we are exporting, we are seeing that tourists are having difficulties visiting our country."

Currency fluctuations and their ramifications are subtle and complex. A weaker currency does make it harder for tourists but it makes it easier for those businesses wanting to sell to the country whose currency has appreciated.

CURRENCIES
Your Mexico trip is more costly:

Topic: US dollar continues losing purchasing power vs MX peso

Funds sent from the United States to Mexico no longer yield the same return as they did when the dollar was at the average 18 pesos per unit
By Cinthya Gómez and TELEMUNDO 20 •
Published April 10, 2024 • Updated on April 11, 2024 at 8:54 am

The Mexican peso continues to break records, appreciating its strongest level against the dollar in almost nine years at 16.44.

"The U.S. currency has lost value against all other currencies because there's a lot of dollars in circulation,"
Jorge Fonseca, an economist in Tijuana, told NBC 7's sister station Telemundo 20.

However, these fluctuations generated by the "Super Peso" have also had negative impacts on the binational economy.

"This is like a pendulum, if you go a lot to one side upwards, you go back a lot, but that's going to be corrected.
How long? We don't know that. Because it's no longer responding to supply and demand. We are seeing a very strong growth in the trade deficit of Mexico and the United States. We are importing much more than we are exporting, we are seeing that tourists are having difficulties visiting our country."

Funds sent from the United States to Mexico no longer yield the same return as they did when the dollar was at the average 18 pesos per unit. By having an overvalued peso between 15% and 20%, according to the economist, the purchasing power of tourists on the other side of the border has also decreased.

Merchants like Héctor Santillan, who has been selling handicrafts on Tijuana's Revolución Avenue for decades, have felt the impact.
"Those of us who handle a lot of dollars or those of us who have dollars complain because our dollars are being decapitalized on the one hand and on the other hand the product is becoming more expensive," he said.

And it is that there are already months that have had a downward trend, with tourism in dribs and drabs, even in high season.

"Since September of last year, the phenomenon of the economy in the United States has slowed down, but the medical cluster has helped us a little, but outside of there there is no tourism that comes free," added Héctor Santillán, a tourism merchant.
According to representatives of the tourism sector here in the city of Tijuana, they are seeking approaches with authorities on the other side of the border, in order to continue with this tourism promotion a little less affected."

End article Text.

Did any local Residents notice that the crowds during the temporada de la "Semana Santa" were noticeably down?
(e.g. from previous periods of the same Holiday period, when Zihuatanejo was bursting at the seams.)