nbxcdaThe darker side of Mexico’s $63bn remittances boom.

1/16/2024

In relation to the remittances sent from the USA to México, I wanted to call attention to our proponent of the "Super Peso", the fact that because of that & the corresponding DEVALUATION of the USD here, (unless the senders increase the $ amount sent), , the recipients of those remittances are getting 15%+ LESS PESOS than prior to the devaluation, when the USD was hovering in the 20 range, instead of it's current 17 or so value.

So, could our Proponent & Spokesperson, or anyone else, please tell me/us how that benefits Mexican nationals who receive remittances?

> I’m no economist but I don’t think DEVALUATION is the proper word to describe what’s going on with the USD.

Devaluation means something else entirely…[/b]

1/17/2024
@mosesk
Sure, you're right. Take a look at the definitions from Dr. Google below.
You can apply whatever term You want.
I just used it because, the USD has had LESS VALUE to purchase MXN as it did 1 yr. back.
So my logic was to call it as I did, "devalued". Make sense?

Definitions-->
What do you mean by devalued?
-- to reduce (a currency) or (of a currency) be reduced in exchange value.

What is difference between currency depreciation and devaluation?
--Devaluation is reduction in value of domestic currency by the government under fixed exchange rate system. It is a deliberate effort.
On the other hand, Depreciation is decrease in value of domestic currency due to market forces of demand and supply under flexible exchange rate system.

What is the meaning of devaluation of currency?
--Devaluation is a downward adjustment to a country's value of money relative to a foreign currency or standard. Many countries that operate using a fixed exchange rate tend to use devaluation as a monetary policy tool to control supply and demand.

Devaluation is the deliberate downward adjustment of a country's currency value. The government issuing the currency can decide to devalue its currency. Devaluing a currency reduces the cost of a country's exports and can help shrink trade deficits.

So, YES, according to the last definition, the term devaluation is not correct, as there was NO "deliberate downward adjustment to a country's value of money relative to a foreign currency".
It seems that the loss of value of the USD related to MXN, was due to various other factors.
So, Depreciation at least in relation to MXN, may be more suitable term, vs devaluation?

Isn’t it great to learn something new?
It’s called getting educated!
Priceless!!