Anyone know anything about Mexico's economics/currency?

[edprush]

I heard that the interest rate earned on money deposited in mexican banks is around 15%. Is this true?

I also heard that you lose money when you try to convert the pesos back to dollars.

 

[VictorLazlo]

So today, your dollar buys 11.2 pesos. But in a few months, that may change to 11.3. The peso is always rising against the dollar. So when you convert your money back to dollars, you have less money than when you started. This will probably outstrip the benefits of the higher interest rate at a mexican bank.

Even though you are earning more interest, you are losing more as the peso devalues itself.

 

[krunchykrome]

Alcohol is cheap in Mexico.
I got 3 shots of tequila and 3 beers for $4.

 

[VictorLazlo]

Originally posted by: krunchykrome
Alcohol is cheap in Mexico.
I got 3 shots of tequila and 3 beers for $4.

Once again, the tequila-heavy portfolio pays off for the savvy investor!

 

[edprush]

I was told that in Mexico and in the US (near the Mexican border and maybe elsewhere) that there is a penalty/less favourable exhange rate when converting pesos to dollars. For example, you convert $1 (American dollar) to 11.20 pesos and simultaneously you need more than 11.20 pesos to get a dollar. Is that right?

I sure wish I had more knowledge about currencies/futures.........

 

[her209]

Don't do it. You'll be sorry.

 

[CrazyHelloDeli]

A bag of rocks is worth more than the peso. In other words, invest in rocks.

 

[StageLeft]

Yeah. It's crap.

 

[edprush]

I agree that the peso isn't worth much but there must be some way to invest in/against in with futrues trading or something, right? Much in the same way you an short a stock if you feel it is going to drop in value.

 

[GoodToGo]

Mexico has mucho dinero.

 

[edprush]

bump

 

[Jzero]

I'd rather have 10 dollars than 200 pesos. I don't care what the interest is!

My favorite MexiScam is the Change Scam. When you ask how much, use 10 pesos/$1 as a rule of thumb. "It's $12 or 120 pesos."
Hand the guy $15. He calculates your change at the actual exchange rate and only gives you like 22 pesos back.

 

[slydecix]

Originally posted by: VictorLazlo

Originally posted by: krunchykrome
Alcohol is cheap in Mexico.
I got 3 shots of tequila and 3 beers for $4.

Once again, the tequila-heavy portfolio pays off for the savvy investor!

High liquidity!