Last week, I did a post directed at foreign retirees living in Mexico explaining how they can maximize their money by choosing the right time and method to transfer currency from their country of origin to their Mexican bank account.
In case you missed it, you can check it out here: Retired in Mexico: Choosing the Right Time and Method to Transfer Your Money.
The timing of that post was very arbitrary, but coincidentally, the U.S. dollar has recently surged against the Mexican peso and has reached the highest level since the beginning of January of this year: 19.45 pesos. In contrast, back in April the dollar was down to 18.0 pesos.
Many economists attribute the decline in the value of the peso to a variety of factors including investor uncertainty about the future of the North American Free Trade Agreement (NAFTA) and the upcoming presidential election in Mexico scheduled for July of this year.
This is good news for American retirees in Mexico who live solely on income originating in the United States. For those folks, this surge can mean a lot more pesos in their pocket — but only if they actually exchange dollars for pesos before the rate drops again.
Let’s Wrap This Up
Most retirees that we know in Mexico don’t pay much attention to exchange rates and simply transfer money from their home country to Mexico on regular intervals.
One of our friends was like that until I showed him how he has missed out on several thousand pesos of income over the past few months by not choosing the optimal time to make his transfers. He looked a little depressed when he saw the numbers but he vowed not to make that mistake again. It’s amazing what you can learn at Happy Hour.