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Understand the fall of the Mexican peso!

He Mexican peso it has been falling since December against the US dollar. The biggest factor influencing this drop is the pandemic. This is because the pandemic has caused a drastic decline in the country's economy, leading to an increase in inflation.

Mexico is going through the health crisis with a figure of more than 153,000 deaths reported to date, according to the Secretary of Health. So, it ranks fourth in the number of deaths in the world. The pandemic has led to the closure of the economy in the country and in the world, and as a consequence the fall of the Mexican peso.

Prices in Mexico have risen by 3,33% between 2020 and 2021 in just the first half of January. These are values much higher than expected according to the national statistics institute.

See more information about the fall of the Mexican peso!

The Mexican currency quotes 20.3907 per dollar for sale and 19.8827 for purchase. With these values, the peso accumulates a depreciation of more than 2% compared to last week.

The Mexican peso and the stock market fell considerably on Wednesday. The Mexican stock market falls by 1.76% in reference to the S&P/BMV IPC stock index, it was located at 44,262.01 points, with a volume of 247.1 million titles traded.

peso mexicano
Understand the fall of the Mexican peso! (Photo: Freepik/gpointstudio)

coronavirus crisis

Analysts point out that this economic situation is due to the increase in cases of deaths and infections from the coronavirus that the country has been experiencing in the last week. In this scenario, all the countries of the world reach a figure of more than 100 million cases, struggling to contain the virus and the fight for a shortage of vaccines.

The hope of the economy improving with vaccination is being extinguished with the slowness of the distribution of vaccines together with the negative effect of the pandemic on the economic sector.

Therefore, the global financial markets see greater risks, spreading the fear that the measures to contain the coronavirus in the large economies are not enough and generate the opposite effect.

The dollar index advances with risk aversion, this is because investors are demanding more security, the most risky investors are being cautious at the present time. Therefore, this has generated the fall of the Mexican peso. See more news on our website!

See also:

The best countries to invest in in recent times

Banorte prepaid card is ideal for your trips abroad

The Banorte prepaid card it was created especially for you who are traveling or preparing to study abroad. This is because the card is denominated in US dollars, thus allowing you to manage your expenses and your funds at a low cost. 

One of the first needs that every foreign traveler has is how to take money from their country abroad. The Banorte prepaid card allows its clients to withdraw money at electronic teller machines and make purchases in commercial establishments in the local currency. 

When you return from your activities abroad, the Banorte bank offers you two options on how to use the balance left over from the trip. First you can save your balance for future trips. The second option, in turn, would be to withdraw your money in cash, either in pesos or dollars. Do it in bank branches or in ATM networks for free.

How can you get your Banorte prepaid card?

It's simple, just follow the steps we will present:

  1. go to the nearest branch;
  2. bring your current official identity document;
  3. Bring proof of address with a maximum of 3 months old. 
tarjeta prepagada Banorte
Find out how you can get your Banorte prepaid card!

Are you wondering how much balance money I can take abroad with my Banorte account? The maximum balance is 25 thousand dollars, all this if the operation is justified with the economic activity that you demonstrated in the bank when you opened your account. 

The places where you can use your prepaid card are establishments affiliated with Visa and MasterCard, Red Visa/Plus ATMs in Mexico and abroad.

You have a daily limit at your disposal! You can withdraw cash at ATMs for 480 US dollars or 300 euros. It all depends on the country you are in! In addition, it can also be withdrawn in local currency. 

The Banorte prepaid card has several benefits! For example, it can be used at a low cost, because you don't need a minimum balance and your clients pay few commissions or annuities. You also have a free replacement if your card is lost or stolen abroad.

Another benefit of Banorte prepaid card It is the protection when traveling. If you get sick, every time you travel you have free medical assistance for 15 days. In addition, if you need to communicate outside the country, it offers you worldwide telephone assistance with different functions in the Visa TravelMoney Call Center. 

Santander Free Credit Card: without annuity and with rewards

The Santander Free credit card It is a card that does not charge you commissions that also has a rewards program. Therefore, we will talk about the benefits and requirements of this product. Verify!

The Santander Free card earns you 1 point for every dollar you spend. In addition, this card provides you with 1 Paybaback point for every 10 dollars spent. With Payback points you can pay for the purchases you make at Cinemex, 7-eleven, La Comer, etc.

Tarjeta de Crédito Santander Free
Get to know the Santander Free card now! (Photo: Coru)

Besides, the Santander Free credit card provides you with medical and road assistance, both in Mexico and abroad; extended warranty for one more year, travel luggage insurance, among others, with a total coverage of $200.  

How much does it cost Santander Free Credit Card?

  • Income from $7,500.
  • A CAT 91.7% (average), without VAT.
  • An interest rate for a balance of 57.44% (weighted average).  
  • This card does not charge an annual fee as long as you spend at least 200 pesos per month. 
  • In cash deposits, (several banks charge you only for withdrawing money from your credit card up to 16%, plus interest); payment of services, among others. You should only use it once a month.

Requirements

  • Be between 20 and 69 years 11 months old;
  • minimum income of $7,500 MXN per month;
  • fill out and sign the Santander Credit Card Single Application, selecting the Free option;
  • copy of a valid official identification. In case of being a foreigner, valid passport and copy of the FM2 immigration document;
  • Copy of proof of address not older than 2 months (landline telephone, water, property tax, piped gas, electricity or account statements issued by Santander), only if the voter identification card is different from the current address;
  • copy of your last two proofs of income or tax returns.

The only bad thing about this card is the fees they charge you if you delay your payments. They are very high rates, which would make you have to pay a fortune if you delay your payment. However, if you pay on time this will not happen.

The Santander Free Card, as its name in English “Free” says, is free of commissions in annuity for life.

Economic Recession: more than 150,000 businesses close in Mexico

Mexican businessmen are barely trying to survive the economic recession — often unsuccessfully — that has deepened due to the COVID-19 pandemic. This without practically receiving assistance from the Government.

Business owners report that they are extending credit to their customers while laying off employees, or reducing their hours or wages.

¡Entienda lo que los empresarios están haciendo para enfrentar la recesión económica!
Understand what business owners are doing to weather the economic downturn! (Photo: Internet)

Read more about the economic recession in Mexico from the point of view of businessmen!

The National Alliance of Small Merchants reported Tuesday that more than 150,000 businesses, most of them small businesses, have been forced to close during the pandemic. Last week, the government statistics agency said that 92 percent of businesses of all sizes reported that they had not received any government support in April and May. That due to the pandemic, according to its most recent survey.

According to the UN Economic Commission for Latin America and the Caribbean, the Mexican government increased its spending by just 1.1 percent of its gross domestic product to face the effects of the pandemic. It is one of the lowest increases in the entire region. Meanwhile, the government has stuck to its austerity goals, which have included cutting the salaries of many civil servants.

"The economic recession that the country is going through is of a greater dimension” than what the federal government is doing now. That is what Cuauhtémoc Rivera, president of the National Alliance of Small Merchants (Anpec), said. the institution includes approximately 95 thousand members.

Anpec represents neighborhood businesses. Examples are corner stores, tortilla shops, butcher shops and others. These are the businesses closest to customers and are usually family businesses in their own homes. They see the plight of customers, who buy more essentials on credit. Also, they seem to be emotionally exhausted.

The situation is serious!

In April, Mexico lost 550,000 jobs in the formal economy. Something around half of the jobs that have been lost to date.

Mexico is experiencing the worst annual drop for a quarter since the National Institute of Statistics and Geography (Inegi) began recording. The country remains with a figure in the second quarter of 2020 of -18.9%. This means that the Mexican economy contracted 2.2 times more than the worst quarter of the Mexican crisis. We are talking about the crisis that occurred in 1995. 

Conclusion

López Obrador has pushed to reopen commerce quickly to save the economy. Despite this, we are in a economic recession and infections and deaths from COVID-19 continue to rise.

Also read:

IMF: Mexican economy will be one of the hardest hit by COVID-19

Digital Business: The United States and Europe compete against China 

The United States and Europe could compete against China if they make an alliance to create a new global framework for how to govern the profitable digital business. The United States and Europe share many common concerns about their competition, China.

The US president could have moved to create an alliance with Europe that could put some pressure on China over current trade grievances, and together make a new global framework for how to govern in profitable markets. digital business.

Negocios Digitales: Estados Unidos y Europa compiten en contra de China
Digital Business: The United States and Europe compete against China (Photo: Internet)

Understand the relevance of digital business in the economy!

However, the Trump team preferred to pit everyone against each other, applying tariffs equally to enemies and allies, resulting in the creation of the tripolar world we know today. In it, the United States, China and Europe are moving in different digital directions. 

Europe and the United States are also fighting over how to define taxes on the profits companies make from consumer data.

Europe wants a system that targets big tech companies as the world is moving into an economy that is becoming more tangible by the day.

However, the United States argues that there are other multinationals that also collect customer data and that, because of this, they should also pay taxes in the US.

For now there are only two winners in this great transatlantic war. Big tech companies and companies that collect digital data. These form the first group, as they continue to grow, both in power and wealth. The second winner is China, which implements 5g systems around the world faster than the United States.

If Biden wins the presidency, it will be unlikely that he will want to change the dynamics of the decoupling of technologies between the United States and China. The candidate, in recent statements, made it clear that he will want more innovation in the country, as well as shorter and more secure supply chains.

However, Biden stressed that there is a need for cooperation with countries allied to the United States.

Conclusion

It is true that reaching a common point on all issues of the profitable digital business it would be quite difficult. However, this would guarantee that Europe and the United States are better prepared to face their competition, China, in an increasingly fragmented scenario.

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