SAN DIEGO (Border Report) — The restaurant industry in Baja California is elated with the dollar’s resurgence in value versus the Mexican peso.
Giovanny Angulo Robles, vice president of the National Chamber for the Restaurant Industry, believes a stronger dollar will draw more Americans to restaurants south of the border in the coming months.
Right now, financial markets are trading one dollar for 19.30 pesos.
According to Reuters, the Mexican peso is at its weakest point against the dollar in nearly two years due to concerns the U.S. economy could be headed for a recession.
“As in any domino effect where there is panic, everything moves towards safe-haven assets and leaves assets considered risky, such as the Mexican peso,” said Gabriela Siller, director of analysis at Mexico City’s Banco Base.
Angulo Robles and Tijuana restaurateurs believe the stronger dollar means more buying power for people north of the border who are seeking dining opportunities in Tijuana.
“If the peso goes from 21 to 16 per dollar, visitors will say it’s not worth it to come to Tijuana especially if it means a three-hour border wait, it’s better to stay home,” he said.
He expects the opposite will take place now that the dollar is surging in value.
“As long as it doesn’t get beyond 21 per one, if it stays in that range we should be okay.”