Mexican Peso’s Collapse Hurts American Businesses
By ABC-7 Reporter Rachel Abell
EL PASO — There’s bad news for some Borderland shoppers as Mexico’s peso dipped to its lowest rate in almost 14 years. Financial analysts said it may drop even further in the coming weeks.
According to Mexico’s national bank,the exchange rate is roughly 14 pesos for every American dollar. The effects could be seen in Downtown El Paso, where the normally crowded streets were empty of shoppers.
Some Mexican shoppers ABC-7 spoke with saidthey’re shopping less because of the struggling economy and the bad exchange rate.
After more than a decade of stability, the peso has slid more than 15 percent in value against the dollar this week alone. The peso’s fall means Texas exports to Mexico will be more expensive for Mexicans to buy. American stores in border cities like El Paso are feeling the pinch.
“The people don’t want to shop…the exchange rate is bad and so we have problems getting pesos and there are less people exchanging,” said Humberto Mendoza, who works at the J.L. Money Exchange store in Downtown El Paso.
In an attempt to slow the peso’s fall, Mexico’s central bank bought $400 million worth of pesos at an auction.
ABC-7 talked to a number of shoppers downtown and most of them said even though the exchange rate is not good, they will still continue to shop Downtown. Still,they hope that rate won’t get much worse.
