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Less Pesos For More Money ?


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#1 nebinkwe

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Posted 16 September 2012 - 07:35 PM

As our Canadian dollar grows in value ($1.02.9) it perplexes me that I get LESS pesos (13.13 pesos) for my dollar rather than MORE! I'm REALLY perplexed about why???
Shouldn't we get MORE pesos for our dollar at this value?
HOW does that work? A less valuable dollar gets us more pesos? I'm CONFUSED!! :blink: ;)
Sometimes in life, you never know when you're going to be handed a bunch of 'limons', but, living here in the Yucatan, you can make some pretty awesome Margaritas with those limons!! It's all in how you learn to 'roll with it' as they say! "Bottoms up, I believe I'll have another Margarita, por favor!"



#2 whazzoo

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Posted 16 September 2012 - 08:06 PM

As our Canadian dollar grows in value ($1.02.9) it perplexes me that I get LESS pesos (13.13 pesos) for my dollar rather than MORE! I'm REALLY perplexed about why???
Shouldn't we get MORE pesos for our dollar at this value?
HOW does that work? A less valuable dollar gets us more pesos? I'm CONFUSED!! :blink: ;)


Think of it this way, the Canadian dollar is not growing, the USD is shrinking and the Mexican Peso is not shrinking as much in comparison. So the CDN dollar appears stronger but only vs the USD not always other currencies like Mexico's.

Whazzoo

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#3 ChuckD

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Posted 16 September 2012 - 08:06 PM

How are you calculating this? As the dollar has gone up, it has been costing us less Canadian dollars to take the same amount of pesos out from the ATM. Yesterday's withdrawal of $5000 pesos cost me $384. Two weeks ago, $5000 cost me $389, so that means I'm getting the same amount of pesos for less money.
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#4 whazzoo

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Posted 16 September 2012 - 08:11 PM

How are you calculating this?


Hmmm, how are you? A while ago you would have gotten 13.6 plus pesos to 1 canadian dollar. Today it is about 13.1 to the Canadian dollar, so less pesos per dollar. Sure looks like less not more to me.

Whazzoo

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#5 Dave_in_Ont

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Posted 16 September 2012 - 08:43 PM

15 years ago we got 6 pesos to the Canuck dollar, while Americans were getting 10 pesos to their buck...now we are pretty even at 13 pesos to the dollar.

I don't sweat the current small fluctuations at all.

Driving Through Mexico


Seven years snow free, and still counting on my luck!!!


#6 ChuckD

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Posted 16 September 2012 - 09:59 PM

On my actual example above, I'm getting more pesos for less Cdn dollars as the dollar rose vs the peso I don't see where you calculate $384 being more than $389. I am the same as you Dave. This is the first time I've looked at the dollars vs pesos. It is what it is, and makes virtually no difference to me.
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#7 whazzoo

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Posted 16 September 2012 - 10:28 PM

On my actual example above, I'm getting more pesos for less Cdn dollars as the dollar rose vs the peso I don't see where you calculate $384 being more than $389. I am the same as you Dave. This is the first time I've looked at the dollars vs pesos. It is what it is, and makes virtually no difference to me.


I must be missing something but I am pretty good at math, 13.6 per dollar is more pesos per dollar than 13.1 per dollar, which was the rate today.

Whazzoo

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#8 judy

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Posted 17 September 2012 - 04:23 AM

Isn't it more how you look at what you final goal is. I want $5000 pesos, that is my goal. When I see what I paid for my $5000 pesos I am happy when, as Chuck's example, my bank statement says it cost me less dollars this week than last.
If you are looking at what you got for your dollars yes it is less pesos for the amount of dollars from last week to this week, but we live on pesos and now we have greater value.
Those pesos are still paying off my phone bill ($599 mx) and so I am happy that $599 mx took less dollars this month than last month for the same bill.

#9 ChuckD

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Posted 17 September 2012 - 07:34 AM

You got it, Judy.
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#10 whazzoo

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Posted 17 September 2012 - 08:23 AM

Isn't it more how you look at what you final goal is. I want $5000 pesos, that is my goal. When I see what I paid for my $5000 pesos I am happy when, as Chuck's example, my bank statement says it cost me less dollars this week than last.
If you are looking at what you got for your dollars yes it is less pesos for the amount of dollars from last week to this week, but we live on pesos and now we have greater value.
Those pesos are still paying off my phone bill ($599 mx) and so I am happy that $599 mx took less dollars this month than last month for the same bill.


Remind me not to have you do my banking :blink: your first statement highlighted says less dollars and your second says less Peso's so how can you have both less and more. Note the same amount was taken out below but this week it cost me 5 dollars more because the peso is stronger. Perhaps you would like to sell me your pesos at a great rate.

Sept. 17, 2012 Automated Banking Machine INTL ABM WITHDRAWAL* INTL ABM TRANSACTION*SCD 9000 00000006022.62 MXN @ 0.078301 $471.58

Sept. 06, 2012 Automated Banking Machine INTL ABM WITHDRAWAL* INTL ABM TRANSACTION*SCD 9000 00000006022.62 MXN @ 0.077506 $466.79

Note I took out 6000 peso each time the dollar amount is what those pesos cost me.

Whazzoo

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#11 ChuckD

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Posted 17 September 2012 - 08:45 AM

Here's your reminder: Don't let me do your banking. If I get $5000 pesos in exchange for $384, it's better than getting $5000 in exchange for for $389. I'm not sure why you have such a hard time grasping that concept.
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#12 whazzoo

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Posted 17 September 2012 - 08:54 AM

Here's your reminder: Don't let me do your banking. If I get $5000 pesos in exchange for $384, it's better than getting $5000 in exchange for for $389. I'm not sure why you have such a hard time grasping that concept.


Tell us what Canadian bank you are using as we all should switch, apparently they don't follow the Bank of canada foreign exchange rates (plus bank percentage) which for last week was Mexican peso 0.07513 0.07481 0.07487 0.07513 0.07620

Or you can get the rates here

Whazzoo

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#13 Channi

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Posted 17 September 2012 - 09:18 AM

very scary thread...perhaps the gods will favor us with a Fishinisfun primer on critical thinking skills as applied to the ambiguities of exchange rates :huh: :)

#14 ChuckD

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Posted 17 September 2012 - 09:28 AM

I use Crosstown Civic Credit Union, and my withdrawals were at Bancomer.

I've never followed the exchange rates, and wouldn't read a fishin' treatise on them (no offense to fishin'). When I need $, I take it out what I need. I had never checked the cost difference of withdrawals until this thread. Since I don't really care enough to argue, I'll leave it at "less Cdn dollars per $5000 withdrawal is better than more Cdn dollars per $5000 peso withdrawal." (my opinion only - I'm not trying to convince anyone)
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#15 doble

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Posted 17 September 2012 - 02:04 PM

I don't sweat the small stuff - just get whatever pesos I need when I need them - the Fx rate is going to fluctuate somewhat but the difference is relatively insignificant for the most part when you are living in Yucatan. This is different if you are buying a house - then on will try to manage a bit on the Fx rate.

Just like the CAD-MXN and CAD-USD rates right now.
Saludos

#16 Dave_in_Ont

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Posted 17 September 2012 - 03:13 PM

I'll leave it at "less Cdn dollars per $5000 withdrawal is better than more Cdn dollars per $5000 peso withdrawal."


My sentiments exactly Chuck.

When we get down to 200-300 pesos in pocket, we withdraw another 6000. If the rate happens to be 12.5/1 or 13.5/1 on that day makes no difference. I follow the exchange rates regularly, just out of curiosity. Just like I follow the stock markets. Nothing I can do about either, just curious.

Driving Through Mexico


Seven years snow free, and still counting on my luck!!!


#17 whazzoo

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Posted 17 September 2012 - 03:49 PM

My sentiments exactly Chuck.

When we get down to 200-300 pesos in pocket, we withdraw another 6000. If the rate happens to be 12.5/1 or 13.5/1 on that day makes no difference. I follow the exchange rates regularly, just out of curiosity. Just like I follow the stock markets. Nothing I can do about either, just curious.


Except it does make a difference. If you are here full time and for arguement sake budget on 2000 a month or 24,000 a year, then a .5 shift in the right direction puts 16,000 pesos in your pocket or on the other hand takes 16,000 out of it over the course of a year. 16000 is not a big amount, but it pays my house and car insurance for starters.

Since your here only 1/2 the time it would go a long way to paying your bar tab or then again maybe not.... :P

Whazzoo

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#18 iowahawkeye

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Posted 17 September 2012 - 04:47 PM

Except it does make a difference. If you are here full time and for arguement sake budget on 2000 a month or 24,000 a year, then a .5 shift in the right direction puts 16,000 pesos in your pocket or on the other hand takes 16,000 out of it over the course of a year. 16000 is not a big amount, but it pays my house and car insurance for starters.

Since your here only 1/2 the time it would go a long way to paying your bar tab or then again maybe not.... :P

Whazzoo



if both curriencies are at par! In the current environment where the Peso has traded in the range of 12-14:1USD, the impact would be somewhat less.
"facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence." John Adams

#19 Dave_in_Ont

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Posted 17 September 2012 - 07:46 PM

Whazzoo, I believe your figures are a wee bit off.

An annual budget of $24,000 US would be 312,000 pesos at a rate of 13/1
An annual budget of $24,000 US would be 324,000 pesos at a rate of 13.5/1

A difference of 12,000 pesos a year. Yes, a considerable amount of pesos. But really only about $75 US per month at current rates. That is less than what we pay for electricity per month at our home in Canada whether we are there or not.

I seriously doubt that a difference of $75 US/month is gonna be a big deal breaker for any ex-pats or long term snowbirds.

(Using $ US and $ CAD interchangeably because both are close to par currently)

I wonder how many Canucks would be living full time or long term, in the area, if the exchange rates were what they were 15 years ago (6.5/1)? We were and still would!

As far as my bar tab....Think higher!!!! :P :lol: :P

Driving Through Mexico


Seven years snow free, and still counting on my luck!!!


#20 ChuckD

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Posted 17 September 2012 - 07:50 PM

Right Dave. And since we don't control the rate, it really does not make any difference. It is what it is. I'd rather do something else than watch my spending by analyzing exchange rates.
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