As the rate went from 18.6 to 18.79 pesos per dollar, this is a currency depreciation. Because one-dollar worth of money can now buy more Mexican pesos, implying a fall in the value of Peso in terms of dollars. As a currency depreciates, its imports become costlier while exports become cheaper, thereby increasing exports over imports and thus leading to trade surplus.
Also, the depreciation value of the Mexican peso poses monetary issues for the nearby and countrywide economic system. The decline in the value of the peso, relative to the U.S. dollar, will cause a few Mexican agencies importing U.S. merchandise to search out inexpensive alternatives. This declined will also cause some border residents to shift their purchases far from U.S.
Also, the depreciation value of the Mexican peso poses monetary issues for the nearby and countrywide economic system. The decline in the value of the peso, relative to the U.S. dollar, will cause a few Mexican agencies importing U.S. merchandise to search out inexpensive alternatives. This declined will also cause some border residents to shift their purchases far from U.S.