The fluctuating Mexican peso can put a strain on Southern Arizona businesses, according to the economic development office of Tucson, and the U.S. presidential campaign is causing an already weak Mexican peso to rise and fall, economists have told CNN.
Felipe García, executive vice president of local tourism group Visit Tucson, said a dip in the peso can make the effective price of products sold to Mexicans crossing the border to shop in Arizona increase overnight.
Right now, the exchange rate stands at around 19 pesos to one dollar, meaning the cash of tourists from the U.S. will go farther in the neighboring country to the south. For Mexicans coming to spend money in the U.S., the opposite is true.
“Every time that there is a dip of the peso – 10, 15, 20 percent – our products just changed the cost for individuals in Mexico by 10, 15, 20 percent.”
García believes the up-and-down trend for the Mexican peso should stabilize once the U.S. presidential election is over. Whether it stabilizes at a higher or lower rate, he said, will depend on who wins the election.