![]() ![]() What has happened in the recent past that has caused the Mexican Peso exchange rate versus the US Dollar to move so significantly has to do with the fact that a significant portion of the Mexican government’s budget has its source in oil revenues that are received from the state run petroleum company, PEMEX. It has been as low as 14.3, and as high as 15 Mexican Pesos to the US Dollar. We had an opening exchange rate in Mexico for the Peso, at the beginning of 2015, about 14.7 to 1 US Dollar. The Peso started to trade in the 14:1 range. In December, we saw a pretty significant movement. Looking back at 2014, we see a Peso that traded between about 12.5 and up to about 13.3, and, that is again, against one US Dollar. That’s been the case for the last several years. What, in fact, is happening with the exchange rate in Mexico vis a vis the US dollar?Ĭoming out of last year, we had a relatively stable Peso. That comment is a lead in to the first question. We have seen, however, just recently, a some what significant movement in the Mexican Peso exchange rate. I lived through some days of what was deemed hyperinflation in Mexico, when we had over one hundred percent inflation, devaluation, a change in currency from the old to the new Peso, to today’ relatively calm currency conversion and, in terms of inflation, single digit similar to the United States. ![]() I have a little less than thirty years of experience in the maquiladora environment. A little background biographical information would be appreciated. Mark, if you will give a little background about yourself and then we can get into the topic of discussion of today, which happens to center about the question of how exchange rates in Mexico affect manufacturers. I am doing quite well, and appreciate the opportunity to address a highly important topic. We’re speaking with the executive vice president and CFO of the Tecma Group of Companies, Mark Earley. Today, in this particular installment, the conversation is with an internal expert. Hello and welcome to another installation of Tecma Talk podcasts during which we speak with experts that are both internal and external to the Tecma Group of companies about issues that have to do with manufacturing in Mexico. Tecma executive vice president and CFO, Mark Early, explains how the exchange rate in Mexico affects manufacturers. ![]()
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