# Peso Falls to 16 to $1 for Those Selling Dollars



## Meritorious-MasoMenos (Apr 17, 2014)

Today, a Banamex ATM gave me 16.09 pesos for each dollar I exchanged, the first time that I, at any rate, received over 16 pesos to one dollar. Of course, it's been over 16 to $1 for those buying dollars for some time now.

When I returned to Mexico in December, I believe the rate was about 12.5 per dollar, over maybe it had edged already over 13. Don't remember. In any event, it's been a significant drop and I imagine everyone earning dollars has been happy during this period, especially expats on a fixed income.

On the other hand, Mexicans are a lot more sophisticated about this than in the chaos of the 80s and 90s, with many properties priced in dollars and now, the place where I'm staying notified me a huge increase that would wipe away most of additional pesos I'll be getting. I'm sure other prices are on their way up or have already been boosted.

If such inflation is occurring I wonder how Mexican wage earners are going.


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## coondawg (May 1, 2014)

Meritorious-MasoMenos said:


> On the other hand, Mexicans are a lot more sophisticated about this than in the chaos of the 80s and 90s, with many properties priced in dollars and now, the place where I'm staying notified me a huge increase that would wipe away most of additional pesos I'll be getting. I'm sure other prices are on their way up or have already been boosted.
> 
> If such inflation is occurring I wonder how Mexican wage earners are going.


I'm gonna venture a guess that where you are staying, they are aware that you are getting more pesos and they want the "windfall". So, since they are confident that you will not go somewhere else, they have raised your fee. Your contract should specify when and by how much they can raise prices. Those that think they can get away with it are raising prices, others, not yet, but increases are coming. The rich get richer, and the poor get poorer. Good luck.


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## Meritorious-MasoMenos (Apr 17, 2014)

coondawg said:


> I'm gonna venture a guess that where you are staying, they are aware that you are getting more pesos and they want the "windfall". So, since they are confident that you will not go somewhere else, they have raised your fee. Your contract should specify when and by how much they can raise prices. Those that think they can get away with it are raising prices, others, not yet, but increases are coming. The rich get richer, and the poor get poorer. Good luck.


Yes, I've been thinking the same thing. I was chatting with a Mexican woman who's lived in the building 20 years. She said they do raise her rent but she's done all she can to lower it, giving up internet and daily maid service. Just ain't no way they bumped her up more than 20 percent. You've given good advice but alas I purposely am staying in a month to month place as I'm thinking of heading to Asia come December, once their rainy season ends, for a few months. I wonder if crying will help?


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## Isla Verde (Oct 19, 2011)

My landlord wouldn't dream of raising my rent, just because the dollar is doing so well against the peso. Of course, that could have something to do with the fact that I have a 12-month lease, and he is a good friend of mine.


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## AlanMexicali (Jun 1, 2011)

Meritorious-MasoMenos said:


> Today, a Banamex ATM gave me 16.09 pesos for each dollar I exchanged, the first time that I, at any rate, received over 16 pesos to one dollar. Of course, it's been over 16 to $1 for those buying dollars for some time now.
> 
> When I returned to Mexico in December, I believe the rate was about 12.5 per dollar, over maybe it had edged already over 13. Don't remember. In any event, it's been a significant drop and I imagine everyone earning dollars has been happy during this period, especially expats on a fixed income.
> 
> ...


Threaten to move out if they raise the rent. We have several rentals and really don´t like re-renting because it is more work and lose of income than you might think in the long run. Inflation last year officially was 4.23% but rents of house/apartmnet/commercial and their sales prices usually rise about 5% to buy per year here or less. So far I see absolutly no effect here except in US imported foods and goods.


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## joaquinx (Jul 3, 2010)

AlanMexicali said:


> Inflation last year officially was 4.23% but rents of house/apartmnet/commercial and their sales prices usually rise about 5% to buy per year here or less.


I'm not to sure of this, but I thought that if you have a lease, the rent can only be raised 5% per year or lease period. Also, rent may be quoted in US dollars, but legally only paid in Pesos.

Is this correct?


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## AlanMexicali (Jun 1, 2011)

joaquinx said:


> I'm not to sure of this, but I thought that if you have a lease, the rent can only be raised 5% per year or lease period. Also, rent may be quoted in US dollars, but legally only paid in Pesos.
> 
> Is this correct?


They can raise the rent according to the lease agreement if it is multiple years, I think but as you noted some places have the rent topped at the inflation rate and it has been in the 4 to 5% range for awhile. I doubt rent stated in USD is really a binding lease contract here in Mexcio, but don´t know, just guessing. As a side note, some owners here do as they please and it is a take it or leave it situation many understand and usually are not inclined to take legal action if worked over. The stress level taking legal action on a landlord or renter usually taking a year or two plus expenses is not worth it. IMO

Low end renters might go to the local government office to complain and get some money from a landlord but it is still limited liability in those cases and needs to be documented 10 ways from Sunday. Again for most not worth the time and paperwork invoulved in most cases.

It appears, at least here, you are in a buyer beware situation at all times and references for both the renter and landlord might be the norm. When the new tax law required landlords to collect the 16% IVA from renters and we advised the renter they all said they will be moving out at the end of their leases. We ate the 16% IVA instead and they stayed put.


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