El Paso Business Owners Feeling the Effects
of Peso Devaluation
Business owners in El Paso are hurting from the devaluation of the Mexican peso, most business owners depend on Mexican shoppers to stay successful. The value of the Mexican peso has increased to 17.80, becoming the equivalent of $1, as of result it is hurting the Juarez residents and their purchasing power to shop in El Paso. The devaluation may soon become 20 pesos to the dollar and recently customers in El Paso have dropped significantly by 25%. When you live on the border and day to day basis you deal with Mexico and about 33% of the retail trade industry depends on doing business with Mexico, it has a great impact on our local economy. The only positive occurrence of the devaluation is that it helps international manufacturers and international companies with operations in Mexico because cost of labor goes down along with the devaluation of the peso. Our families that live on the side of Juarez their purchasing power has decreased a lot and are spending less because of the devaluation of the peso and it doesn’t help that prices keep going up instead of decreasing, having a great effect on what they can purchase. The only hope for Mexican shoppers and business owners in El Paso is that the peso will soon recover back to what it was before the devaluation of the peso.