The darker side of Mexico’s $63bn remittances boom
by Padrino 
, Rosarito/Zihuatanejo, Sunday, January 14, 2024, 10:22 (1029 days ago)
Here is an article from the Financial Times about the recent boom in electronic remittances to Mexico. The speculation is that much of the money might be coming from drug revenue and that has helped prop up the "superpeso" of 2023.
The darker side of Mexico’s $63bn remittances boom
The Financial Times allows a few free articles until they start pinging you to enroll in a subscription.
The darker side of Mexico’s $63bn remittances boom
by ZihuaRob , Zihuatanejo, México, Sunday, January 14, 2024, 10:51 (1029 days ago) @ Padrino
Here is an article from the Financial Times about the recent boom in electronic remittances to Mexico. The speculation is that much of the money might be coming from drug revenue and that has helped prop up the "superpeso" of 2023.
The darker side of Mexico’s $63bn remittances boom
The Financial Times allows a few free articles until they start pinging you to enroll in a subscription.
This has been well known and documented for some time. Last year a Mexican TV news reporter was offered access to inside how this money operation works, and it made for some excellent coverage.
There is nothing the governments can do to stop the flow of stupidly banned substances or the money they generate. The only sane solution is to remove the industry from violent organized criminals by legalizing and regulating it, using the revenue to educate as well as to treat abuse and addictions.
The darker side of Mexico’s $63bn remittances boom
by jaui , Zihuatanejo, Tuesday, January 16, 2024, 16:29 (1027 days ago) @ Padrino
edited by jaui, Tuesday, January 16, 2024, 16:34
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?
The darker side of Mexico’s $63bn remittances boom
by ZihuaRob , Zihuatanejo, México, Tuesday, January 16, 2024, 17:50 (1027 days ago) @ jaui
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?
Because any help is better than no help. It's that simple.
The darker side of Mexico’s $63bn remittances boom
by mosesk , Ojai, CA, USA, Wednesday, January 17, 2024, 00:57 (1027 days ago) @ jaui
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…
nbxcdaThe darker side of Mexico’s $63bn remittances boom.
by jaui , Zihuatanejo, Wednesday, January 17, 2024, 16:41 (1026 days ago) @ mosesk
edited by jaui, Wednesday, January 17, 2024, 17:38
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.
[quote]Devaluation means something else entirely…[/quote]
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 a more suitable term, vs devaluation?
Yes, we can learn something new, and get "educated " a tad more each day, however trivial and relatively insignificant it may be.
A little bit more knowledge can be beneficial for us.
nbxcdaThe darker side of Mexico’s $63bn remittances boom.
by mosesk , Ojai, CA, USA, Wednesday, January 17, 2024, 17:32 (1026 days ago) @ jaui
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!!
