Sunday, March 08, 2009

Money, money, money

So this NY Times article talks about how the "Rising Dollar Lifts the U.S. but Adds to the Crisis Abroad." Ok, duh. The value of the dollar is going up, so everyone living on a different currency is hurt. But what does this mean for countries that depend on remittances from the US? For Mexicans with family members working in the US and sending money back, the rising dollar is both a blessing and a curse. The falling peso means that it is even more necessary for family members to work in the US, but it also means that the money sent back from the US will go a lot further compared to the peso. So, are we going to be seeing more immigration because of the value of the dollar? Or less because jobs are so hard to find right now in the US?

And on a slightly related yet different topic: right now the peso is at around 15 to the dollar (up (or down?) from 10 pesos to the dollar less than a year ago). Most Mexicans know the exchange rate because unfortunately the global economy demands that they know what their currency is worth compared to the dollar standard. Aside from other study abroad students, I don't know any on the US that knows any current exchange rates at all. Such is the luxury of living in the US...