Mexican Laborers in the US Are Cleverly Playing the World's Financial Markets Ana Campoy - Quartz
go to original September 27, 2015

Adapting to the changing currency. (Reuters)

Mexicans worried about the sharply weakening peso are getting some good news from the north - in the form of billions of dollars in remittances. With the peso so low - as of writing, the dollar is trading at around 17 pesos - Mexican immigrants in the US are shipping bigger chunks of their salaries back home to stretch the purchasing power of their hard-earned dollars.

The peso has lost around 20% of its value versus the dollar over the past 12 months, dragged down by lower oil prices and a rush to invest in the US amid global uncertainty and prospects of a Fed rate hike.

...The money coming from abroad can make a big difference in Mexico - last year, remittances reached some $23.7 billion, surpassing the $22.6 billion in foreign direct investment the country received during the same period.

And for now, the weakening of the peso has not fueled any major price hikes for goods, meaning that remittance recipients will be able to make the most of their extra cash.

Read the rest at Quartz

Related: Mexico Peso Slumps to Record Low on Global Growth Worries (Reuters)

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