/ Modified nov 2, 2016 1:33 p.m.

Fluctuating Peso Felt on Both Sides of the Border

Some economists say it moves in relation to presidential candidate favorability numbers.

Peso Spot
Mónica Ortiz Uribe, Fronteras Desk

The fluctuating Mexican peso can put a strain on Southern Arizona businesses, according to the economic development office of Tucson, and the U.S. presidential campaign is causing an already weak Mexican peso to rise and fall, economists have told CNN.

Felipe García, executive vice president of local tourism group Visit Tucson, said a dip in the peso can make the effective price of products sold to Mexicans crossing the border to shop in Arizona increase overnight.

Right now, the exchange rate stands at around 19 pesos to one dollar, meaning the cash of tourists from the U.S. will go farther in the neighboring country to the south. For Mexicans coming to spend money in the U.S., the opposite is true.

“Every time that there is a dip of the peso – 10, 15, 20 percent – our products just changed the cost for individuals in Mexico by 10, 15, 20 percent.”

García believes the up-and-down trend for the Mexican peso should stabilize once the U.S. presidential election is over. Whether it stabilizes at a higher or lower rate, he said, will depend on who wins the election.

By posting comments, you agree to our
AZPM encourages comments, but comments that contain profanity, unrelated information, threats, libel, defamatory statements, obscenities, pornography or that violate the law are not allowed. Comments that promote commercial products or services are not allowed. Comments in violation of this policy will be removed. Continued posting of comments that violate this policy will result in the commenter being banned from the site.

By submitting your comments, you hereby give AZPM the right to post your comments and potentially use them in any other form of media operated by this institution.
Arizona Public Media broadcast stations are licensed to the Arizona Board of Regents. Arizona Public Media and AZPM are registered trademarks of the Arizona Board of Regents.
The University of Arizona