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The strength of the U.S. dollar has the Mexican peso at a historic low, something that could affect how much Mexican visitors spend in Pima County, a local expert said.
“It’s not good news for us,” especially during back to school shopping season, said Felipe Garcia, executive vice president of Visit Tucson. “With the exchange rate shifting, that’s going to hurt customers coming to the U.S.”
Mexican visitors spend more than $900 million dollars in Pima County each year in tourism and shopping, and a weaker peso means those shoppers will have less cash to spend here, he said.
As of Wednesday, one U.S. dollar was at $16.36 Mexican pesos. Last year it fluctuated between $13-$14 and two years ago one U.S. dollar was about $12 pesos.
In 2014 economist attributed the devaluation of the peso mostly to drop in oil prices, political unrest and tighter monetary policy in the U.S.
The Wall Street Journal reported last week that the Mexican peso is the most-traded “emerging-market currency that has taken a hit in recent months from the expected Fed rates move, as higher returns in the U.S. would make the dollar more attractive for investors than riskier currencies.”
Mexico's inflation "hit a new historic low in early July," a NASDAQ news article reported.
Garcia said businesses and retailers in southern Arizona will have to entice Mexican shoppers to continue to shop here.
For American tourists traveling to Mexico this means more money for their U.S. dollars.