# Picked up a few more pesos this morning



## Gatos (Aug 16, 2016)

Exchanged some dollars for pesos this morning. Schwab gave me 21.27 rate (no fees). Looks like I could have done a little better later - but it still helps my running average exchange rate over time.


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## eastwind (Jun 18, 2016)

Great rate. my little app thingy is telling me the Banco de Mexico fix for today is 21.0430/21.0500.
Over the holiday I was getting 20.54 using an HSBC ATM to withdraw from my old US credit union, and I have to pay 1% fee to the credit union plus 33.35 pesos to HSBC. I'm trying to get something set up with schwab.


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## TundraGreen (Jul 15, 2010)

eastwind said:


> Great rate. my little app thingy is telling me the Banco de Mexico fix for today is 21.0430/21.0500.
> Over the holiday I was getting 20.54 using an HSBC ATM to withdraw from my old US credit union, and I have to pay 1% fee to the credit union plus 33.35 pesos to HSBC. I'm trying to get something set up with schwab.


The peso had been steady at about 20.5 ever since the US election on November 8th. Apparently the drop is a reaction to Ford's decision to cancel plans for a plant in San Luis Potosi and Trump's threatening tweet about GM shipping Chevy Cruzes from Mexico to the US.

2016-11-07 18.6575
2016-11-08 18.5622
2016-11-09 20.2346
2016-11-10 20.2266
2016-11-11 20.8237
2016-11-14 20.8800

2016-11-15 20.4671
2016-11-16 20.4701
2016-11-17 20.2952
2016-11-18 20.4128

2016-11-21 20.4836
2016-11-22 20.3301
2016-11-23 20.5942

2016-11-24 20.7480

2016-11-28 20.5487
2016-11-29 20.6842
2016-11-30 20.5712
2016-11-25 20.6502

2016-12-01 20.6401
2016-12-02 20.7816

2016-12-05 20.6366
2016-12-06 20.3754
2016-12-07 20.3256
2016-12-08 20.3415
2016-12-09 20.4399

2016-12-12 20.2408
2016-12-13 20.2439
2016-12-14 20.2617
2016-12-15 20.6546
2016-12-16 20.3590

2016-12-19 20.4261
2016-12-20 20.3734
2016-12-21 20.4441
2016-12-22 20.6901
2016-12-23 20.6921

2016-12-27 20.6169
2016-12-28 20.7384
2016-12-29 20.6954
2016-12-30 20.6545

2017-01-02 20.7418
2017-01-03 20.6967
2017-01-04 21.1468


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## Orfin (Sep 26, 2016)

It seemed at one point the loss in peso value was following oil price decline. That seemed normal where quite a number of oil producing countries had their currency lose value along with economic recession. Venezuela went over the edge and is a catastrophe now because they tried all kinds of artificial currency inflation schemes without any product to back it other than coruption and incompetence.

Oil prices going back up a little now but MXN peso is still losing value.
Trump policy speculation will do it. It's a massive upset he is claiming over US-Mexico commerce/economic relationship.

It's smart to let the currency fall. It ends up bringing in more dollars like my dollars happy to be here now at 21-1. 
There are so much US$ in Mexico that it will almost be a neutral effect if not positive effect that the peso value fall. In reality they are inflating the dollars they already have here while attracting more. The key is that Mexico is a production powerhouse and that is what makes all the difference even with peso value loss. Mexico even has mega factories in europe.

Japan is a production powerhouse with tons of factories in USA and all over the world. Yet Japan loves their currency being at 100¥ - 1$... Same with China when they were booming, they grew so rich that their economy dictated that the currency go up in value. Instead, CHINA was artificially dropping the value of the yuan. 
Brings in more buyers and works great in production powerhouse economies.

Venezuela thought it was big and rich but mostly by oil. They did the opposite and tried to make their currency worth more than it was as well as rely on imports rather than being a production powerhouse beyond just one resource(oil). They have nothing to fall back on. NOT EVEN FARMED FOOD.
Not even a share in the lucrative illicit drug trade that props up most latin american countries beyond their true rate.
MEXICO included, in the latin america illicit drug dollar prop up.
Mexico is benefiting more from the devaluation than it would seem at face value. 
It's more common the Value never goes back down to the long time staple. Mexico had a long time 10 to 1. Places where the currency does go down are either top tier world finance capitals or countries that lost so much value it took a truck load of currency to buy a roll of toilet paper, so they rescaled the value by printing new bills that said 1 unit on the new bill but were traded as 1million units of the old currency. Others just print million unit bills so people can pay small items without a wheelbarrow of cash required.
.
Mexico is no small pickings and they seem to have a smart grip on the economy here despite all the coruption which makes people think of mexican leaders as stupid brutes.

I am starting to think the drug cartels are enjoying their US$ more in Mexico nowadays, and i hope it equates to a peace inducing satisfaction. 

Volkswagen/Audi have factories in Mexico and i suspect Nissan has factories. 
US could force all US production out of Mexico and new deals with Germany, Japan and maybe even Korea and China will pop right up and the US may be stuck making all kinds of stuff at home without the benefit of selling much to latin America because other top innovator countries moved in on the niche.

The Mexico niche is a big one and branches out beyond mexico into central America. Who is going to buy all the made in USA work when all the jobs go back to USA? Thats exactly why they won't all go back. Just a few concession token factories will go back but not many because the reality of marketing puts Made in america at a competitive disadvantage unless we are all willing to work for $5 a day and live in dilapidated cheap shelter. It's illegal to be poor in USA. All the $5 an hour workers would end up in jail soaking up tax dollars into a massive prison for profit scheme. Or be fined into destitution.
The US cannot devalue it's currency to gain a competitive edge such as Japan and China do. US currency is tied into the US global Oil cartel domination and is now the most traded currency on earth as well as fully adopted by other nations like Panama, Ecuador and Elsalvador. The number of countries that would rather have a US$ bill than 2 or 3 of their own local bills is no doubt high. The US tries to devalue it's currency to sell more made in America, and so many countries will collapse or have to devalue their currency and end up at square one or worse than still not being able to afford made in America. 
And when it comes to USA brand cars, few countries even care for them or respect the quality. Even in USA toyota and Honda do better sales and reputation. Mexico is one of the few big time American car loyalists. I think Trump has his work cut out for him and he should have followed the yellow brick road to help rather than follow his own mouth to..... 

I said too much but there it is. Apologies in advance.


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## chicois8 (Aug 8, 2009)

Got 21.40 on my Citi card at Banamex ATM this morn, no fees.......


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## lagoloo (Apr 12, 2011)

Not quite to the point, but to the thread title: Just got our annual SS letter and lo! We could almost have a cheap lunch on the increase, thanks to the peso/dollar exchange at present. Or two beers, not of the best. Those who have their Medicare deducted will see a decrease in their checks. Ain't retirement wonderful?


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## eastwind (Jun 18, 2016)

News this morning was that the Mexico central bank intervened in the forex market by selling US$1B of reserves in the spot market (buying pesos). The peso improved from 21.60 to around 21.15 at best. But news in the last hour or two is that the intervention appears to have failed, with the spot market rate back down to 21.50, almost where it was before the intervention.

Of course they may fire off another intervention tomorrow, so declaring failure can be considered premature. Also it may be that their only goal was to stop the bleeding rather than to reverse recent losses.


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## Gatos (Aug 16, 2016)

eastwind said:


> News this morning was that the Mexico central bank intervened in the forex market by selling US$1B of reserves in the spot market (buying pesos). The peso improved from 21.60 to around 21.15 at best. But news in the last hour or two is that the intervention appears to have failed, with the spot market rate back down to 21.50, almost where it was before the intervention.
> 
> Of course they may fire off another intervention tomorrow, so declaring failure can be considered premature. Also it may be that their only goal was to stop the bleeding rather than to reverse recent losses.


Related assessment :

Why The Mexican Central Bank's $1 Billion Intervention Failed: Goldman Explains | Zero Hedge


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## michmex (Jul 15, 2012)

Gatos said:


> Related assessment :
> 
> Why The Mexican Central Bank's $1 Billion Intervention Failed: Goldman Explains | Zero Hedge


Timing is everything. Banixco's intervention occurred as Trump is railing against Ford, GM and now Toyota which upsets the investment community. The news is filled with news of the protests and looting occurring as a result of the 20% gas increase. Hard to compete against the negatives that are consuming the news cycle.


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## eastwind (Jun 18, 2016)

I wonder if Goldman Sacs somehow makes money if the transactions are done in the swap market instead of the spot market. But the argument seems reasonable to me without knowing much. Isn't the swaps market effectively leveraged where the spot market isn't?


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## Gatos (Aug 16, 2016)

Most things are cyclical ( perhaps Enron or Lehman Brothers are good argumenst against that ). 

I really wish that Mexico would use this time to 'announce' things like new positive alliances etc. I would like to see latin america band together - not to diss Trump - just to throw a little sand on his fire. 

I'm not rooting against the US - but I am rooting against Trump and his crowd.

Does Mexico have any Mexican branded autos ? Aside from phone companies - what Mexican branded companies are there - of size ?


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## michmex (Jul 15, 2012)

Gatos said:


> Most things are cyclical ( perhaps Enron or Lehman Brothers are good argumenst against that ).
> 
> I really wish that Mexico would use this time to 'announce' things like new positive alliances etc. I would like to see latin america band together - not to diss Trump - just to throw a little sand on his fire.
> 
> ...




Cemex has a very large presence in the USA

Bimbo is perhaps the largest bread producer in the USA

Mexico does produce one very low volume (150-250 units) small sports car the Mastretta. Not sure if it is still in production.


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## Gatos (Aug 16, 2016)

Speaking of Cemex - we have a friend whose daughter is 1/2 Mexican and 1/2 French. The girl is in France and working for either Cemex or whatever Mexican cement company is #2. At the moment they are trying to figure out how to come across as a French company rather than a Mexican company in their US relations.

Is that really what it is going to come down to. Trump (and kind) are going to pick on Mexico rather than say European companies. Trump has not had a very good business career in his dealing within Mexico (like some beauty contest and a resort of some sort). I wonder if this is really about some sort of pay-back.

https://en.wikipedia.org/wiki/Trump_Ocean_Resort_Baja_Mexico

https://www.bloomberg.com/politics/articles/2015-06-29/donald-trump-once-got-fleeced-in-mexico-he-s-still-very-angry-


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## RVGRINGO (May 16, 2007)

Didn‘t Lala recently buy Borden? We recently noticed Lala dairy products now on US shelves and that they include “Daisy“. Remember _Daisy the Cow_, the Borden trademark?

Please do not discourage Trump. Let him spout off and atrtack all he wants, until he does something really impeachable and/or really pisses off the wrong people to the point of.....well, who knows. What an egomaniac!


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## Gatos (Aug 16, 2016)

I prefer the word narcissist.


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## Isla Verde (Oct 19, 2011)

Gatos said:


> I prefer the word narcissist.


So what's the difference between a narcissist and an egomaniac? Curious minds want to know.


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## TundraGreen (Jul 15, 2010)

Isla Verde said:


> So what's the difference between a narcissist and an egomaniac? Curious minds want to know.


According to Wikipedia:

*"Narcissism* is the pursuit of gratification from vanity or egotistic admiration of one's own attributes."

"*Egocentrism* is the inability to differentiate between self and other. More specifically, it is the inability to untangle subjective schemas from objective reality; an inability to understand or assume any perspective other than their own."

"*Egomania* is also known as an obsessive preoccupation with one's self and applies to someone who follows their own ungoverned impulses and is possessed by delusions of personal greatness and feels a lack of appreciation. Someone suffering from this extreme egocentric focus is an *egomaniac*. The condition is psychologically abnormal."

"Although egocentrism and narcissism appear similar, they are not the same. A person who is egocentric believes they are the center of attention, like a narcissist, but does not receive gratification by one's own admiration. Both egotists and narcissists are people whose egos are greatly influenced by the approval of others, while for egocentrists this may or may not be true."


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## Gatos (Aug 16, 2016)

Isla Verde said:


> So what's the difference between a narcissist and an egomaniac? Curious minds want to know.


For me it is a matter of degrees. Up front - I have no clinical psychology training - but I do have first hand experience.

A businessman who says things like - "I have built the best company in the world" or "I am the best builder in the world". That person might be an egomaniac - or just proud.

If that same person goes out of their way to lash out and berate someone - say a news reporter or a beauty contestant or perhaps a competitor - to actually attack with no regard for the other individual - and seems to 'need' to act that way - well that person would seem to be showing signs of narcissism. 

For me - a narcissist is always an egomaniac but an egomaniac is not always a narcissist.

If you are able to realize you are dealing with a narcissist - it is best to stay on their good side - don't confront them - don't question them. If you do find yourself on their bad side - the best course of action is to simply walk away.

If the 'most powerful person in the world' exhibited signs of narcissism - well -


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## Gatos (Aug 16, 2016)

Guess this guy was on the bad side....

https://www.washingtonpost.com/news/powerpost/wp/2017/01/05/former-cia-director-james-woolsey-quits-trump-transition-team/?utm_term=.8036141c2866

Oh and THAT wall.

Trump asking Congress, not Mexico, to pay for border wall - CNNPolitics.com


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## lagoloo (Apr 12, 2011)

...and THAT would be why it irks him so much that he didn't win the popular vote, si?

I also suspect that it's possible for one individual to exhibit signs of Narcissism, Egomania and all the other "isms" at the same time.


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## Meritorious-MasoMenos (Apr 17, 2014)

Have local Mexican prices been rising gradually to meet peso drop against the dollar? I guess it will have to eventually. I'm almost certainly moving back to Mexico in latter part of this year. Mexican financial agencies have grown adept with much experience but wondering how much of a time lag.

Never alas will be like the 80s, when peso frequently dropped 50% over night and all of us being paid in dollars could live like millionaires. Never had to look at peso prices I ordered a new car for $12,.00 but by time came to pick it up, I paid only $5,000. A friend bought a house for $80,000, with full payment scheduled to be made in three months (no long term mortgages back then. By time he had to pay, he only had to pay $34,000.

Mexicans soon learned to avoid such deals. But anyway, are prices moving up?


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