Mexican pesosListen
The devaluation of the Mexican peso could affect Pima County’s economy by reducing Mexican citizen spending, a Mexican business expert said Monday.
Mexican visitors spend more than $900 million dollars in Pima County each year in tourism and shopping. They could spend less if the currency value continues to decline, said Felipe Garcia, executive vice president of Visit Tucson.
One U.S. dollar was worth 14.8 Mexican pesos Monday, according to the Foreign Exchange Commission, down from last December when the exchange rate was one dollar to about 12 pesos.
Economists have attributed the devaluation mostly to the drop in oil prices, political unrest and tighter monetary policy in the U.S.
“People are still coming to shop," Garcia said. "They’re spending money. The only thing we’re seeing is that they’re doing so in shorter trips. If [Mexican visitors] were going to stay two nights, they’re staying just one night. If they were coming for one night, maybe they’re just coming back and forth on the same day.”
The price of oil is expected to continue to drop, so economists expect the peso to continue declining in value in the coming months. One forecast has it at 18 to the dollar by June.
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