cross country
Brentwood Bay, British Columbia, Canada
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As we are speaking about US currency used in Mexico....some campgrounds charge by the US dollar. Does this latest information concerning banking effect payment (to the campground) in U.S. dollars for a price (the campground)pegged to the U.S. dollar?
It seems to me as the peso falls the benefit goes to those Mexican merchants pegging a price for service on the U.S. dollar. In other words the service industries mostly catering to U.S. and Canadian customers are floating their price on par with the U.S. dollar regardless of the value of the peso. As the peso drops in value against either currency, the vendor benefits a windfall profit margin as compared to his compatriots pricing in pesos.
Here is an example; monthly price for campground site as advertised; 465.00 U.S. dollars. Cost for Canadian this week (exchange rate) 512.00 dollars. Cost in peso's 5,749 So if the Canadian dollar drops against the U.S. dollar ( to help CDN. exports to the U.S.)the campground fees go up for Canadian's.
To maintain an average price with the best value how would one pay the fee's. 3 months in advance with U.S. dollars seems to make sense to me. Anything gone astray with that line of thinking?
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drtee
RGV, Texas
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Joined: 03/08/2005
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Good Sam RV Club
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cross country wrote:As we are speaking about US currency used in Mexico....some campgrounds charge by the US dollar. Does this latest information concerning banking effect payment (to the campground) in U.S. dollars for a price (the campground)pegged to the U.S. dollar?
It seems to me as the peso falls the benefit goes to those Mexican merchants pegging a price for service on the U.S. dollar. In other words the service industries mostly catering to U.S. and Canadian customers are floating their price on par with the U.S. dollar regardless of the value of the peso. As the peso drops in value against either currency, the vendor benefits a windfall profit margin as compared to his compatriots pricing in pesos.
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My wife and recently took advantage of the JetBlue "All you can Jet" program which offered a month of travel on their system for $500USD. Our first major trip was to Bogotá, Colombia. We found that the charge of admission to all museums and other attractions were always stated in USD for foreigners. The cost would then be calculated in their currency at the current exchange rate.
This assured them that their admission income would always receive the benefit of whatever their exchange rate might be. No impact on the locals, as their prices were stated in Colombian pesos.
Expect to see more businesses in México that receive significant
Moderator's edit: Corrected the quote tags.
* This post was
edited 11/01/09 04:34am by an administrator/moderator *
Wm. W. Thompson, PhD
Professor of Marketing
UT-Pan American
Edinburg, TX
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Garry P
Canada
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Joined: 04/20/2008
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John & Angela wrote:mexbungalows wrote:
Let's see if the Canadian members on this board are going to like paying $2 cdn. for a litre of gasoline. The economic issues affecting the United States and China are only the tip of the mountain of problems facing the world.
So am I getting this right? Is gas like 20 pesos per litre in mexico right now?
Not exactly! 7.9 pesos for a litre of regular and, if I recall forrectly, something over 9 pesos for the higher octane
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John & Angela
Full Timers in Canada, USA and Mexico
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Kinda like last year. What did I miss here as that is a far cry from 2 bucks Canadian per litre. At that price it is cheaper than Canadian gas at around 96 cents per litre.
Come visit us at our website and share in our great fulltime RV Adventure.
2003 Fleetwood Revolution 40C
Retired Canadian Air Force Technicians
Vernon,B.C,Canada.
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Ozimo
NU/Iceland
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Joined: 02/04/2006
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bobofthenorth wrote:Its about time. I've never understood why people think that US dollars should be accepted anywhere other than in the US.
In Panama, Belize and Ecuador the coin of the realm is the US Dollar.
Ecuador abandoned its sucre in favor of the dollar in 2000. The CZ has always been in dollars and Belize commonly trades on dollars and Belizean dollars. Most countries in Latin America have preferred dollars to their currency. But that's changing. More and more countries readily accept the Canadian Dollar, British Pound and Euros. There's been a move away from the US Dollar by OPEC countries in favour of the gold Dinar.
However, I'm not paid in US currency - because:
a) I don't live there anymore;
b) I don't want a faltering currency;
c) The Euro is stronger and more readily accepted in 95% of the world.
Capt. Abraham Quasuittuq
F/V Ozimo II
Hooray home at sea 67.0°N ~ 50.7°W
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mexbungalows
las peñas, michoacan, mexico
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Aghh! I can't stand it!
Ten percent more or less for gasoline. In Mexico the people who sweep your site, trim the palms, arrange landscaping, cook your restaurant dinner, and mix your cocktails are the O-N-L-Y persons that are really and genuinely hurt by a falling peso.
Using a basic wage in the USA or Canada with comparitive pricing, a basic apartment would rent for $2,000 a month, gasoline would cost $12 gallon, a loaf of bread eight dollars, and a car would cost a hundred grand.
Back to the subject of Mexico is now better because the peso dumped.
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DanHouck
Ajijic, Mexico
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Joined: 07/03/2003
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No it's not. At current exchange rate, it is about $2.35 per gallon.
When the price of gas skyrockets again in the U.S., the price will be much more stable in Mexico.
By far the best way to handle the money thing is to bank with a bank that has reasonable charges for ATM use out of the country. ATMSs are everywhere here.
Dan & Ann D.
1998 Country Coach Allure 36'
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Canadian Rainbirds
Vancouver Island (Winter: Mainland Mexico)
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DanHouck wrote:No it's not. At current exchange rate, it is about $2.35 per gallon. . . . .
John and Angela were talking price per Litre not per gallon. The US is one of the few countries in the world, and the only one in this hemisphere not yet on the metric system.
Mind you the UK uses miles on the road, but measure weight and volume by metric! How did they get there?? (though as in Canada you still often see groceries listed in pounds as well as kilos.)
And the UK went metric with their currency decades ago -- but I seem to have gotten off track! Again.
So why did I get annoyed when Garmin went metric with their GPS coordinates? ie 45.9347659 degrees?
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Ozimo
NU/Iceland
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Canadian Rainbirds wrote:The US is one of the few countries in the world, and the only one in this hemisphere not yet on the metric system.
Well not totally - the learning curve is apparently steeper than they thought.
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Hookum
Tucson, Ariz.
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Ozimo wrote:Canadian Rainbirds wrote:The US is one of the few countries in the world, and the only one in this hemisphere not yet on the metric system.
Well not totally - the learning curve is apparently steeper than they thought.
Actually, the truth is that our country is broke, $2 trillion in debt and it costs a lot of money (that we don't have) to convert all those signs, books, maps, milk cartons, etc. Besides, our kids know who the latest rap star is but most could never relearn mph vs kph. So please, just leave us alone. And personally, I'm lazy so I don't want to change. 
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