Sinking peso: Danger sign to economy?

2017-01-25

Question:  Does the sinking value of the Mexican peso pose economic problems for the local and national economy?

Bob’s Answer: YES

San Diego, as a border city, would be impacted by less spending by Mexicans due to the devaluation of the peso, but this is likely to be short-lived. The impact on the U.S. is not as significant. The peso’s devaluation has also increased remittances to Mexico and if exports are impacted by a tariff, this would severely impact Mexico’s economy. But the impact on the U.S. will be felt mostly near the border.

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