Mexican Peso vs. American Dollar

It’s amazing how come that the value of one currency towards another can affect many people’s lives. In the sense that if taking the example of the Dollar (U.S.A.) against the Peso (Mexican); if the Dollar increases its value, many people in Mexico will “suffer” (maybe because Mexico’s economy mostly relies on USA’s) because they will not have enough money to buy things from the USA or even they’ll have troubles solving their debts because they will increase, talking in pesos. But in contrast if the dollar decreases, towards the peso, everybody will buy dollars and go to the USA to buy thing because they “have” money.

I wonder how can they know the relationship between these currencies. I know that this relationship depends on; obviously, the American economy in contrast to the Mexican’s and vice versa, also the inflation of each country. But what factors influence this? Anyway what I try to explain with this, is the fact that a change in any currency can affect many people’s lives, even if the change was not in their country’s currency (as we can see in the example with the U.S. and Mexico.)

The consequences of the change of the currency’s value can vary from insignificant to genocide (dead of many people). For example: the insignificant consequences (mostly when it had changed few cents), you can buy “more” for less, but if the change is huge, the consequences can be from Mexicans buying more from the US to the genocide because people’s debts increase a lot (e.g. what happened in Mexico in 1964, that the dollar increased a lot and many Mexicans that had debts in the USA, committed suicide because their debts increased a lot).

Today:

Divisas y Metales 01.03.2010
Divisas y Metales	Compra	Venta
DOLAR AMERICANO	12.55	12.92