SAN DIEGO (Border Report) — Currency exchange houses along San Ysidro Boulevard are offering less than 17 pesos for every U.S. dollar for the first time since December 2015.
According to Bloomberg, the U.S. dollar has lost about 10 percent of its value versus the Mexican Peso since the beginning of this year.
People like Silvia Solorio have noticed.
“I exchange money regularly,” said Solorio. “I get pesos to go shopping, to go out to restaurants and to wash my car in Tijuana.”
The San Diego resident said she has seen a steady drop in the number of pesos she gets whenever she exchanges currency, making things more expensive south of the border.
“Even the street tacos cost more now,” she said.
Solorio stated her yearly vacation with her husband to Mexico is going to cost them more this summer.
“We’re going to pay 5,000 pesos more when compared to last year.”
If you do the math, that’s $306 more.
According to the New York Times, Chinese companies along with American corporations have been investing more resources and money in Mexico contributing to the strength of the Mexican economy and the Mexican peso.
The rise in U.S. interest rates is also said to be a factor in the peso’s gains against the dollar.
But analysts with Bloomberg and others expect the dollar to regain its strength against the peso by the end of the year.
“The strengthening of the peso has already exhausted its strength, and unless a very important unforeseen event does happen in favor of the Mexican currency, we will have a strengthening of the dollar in the coming weeks and months,” said Swiss Bank Analyst Rodrigo Aguila.