Eagle Pass Businesses face survival as Mexican Peso exchange rate tumbles
By: Jose G. Landa, Eagle Pass Business Journal, Inc., Copyright 2016
Hundreds of Eagle Pass, Texas businesses face serious challenges concerning their financial survival as a result of the tumbling Mexican Peso monetary exchange rate compared to the United States Dollar, which is now trading between 19 to 20 pesos per U.S. Dollar.
Downtown Eagle Pass retail businesses report a decrease of Mexican-based retail business sales up to 50 percent compared to six months ago as a result of the fall of the Mexican Peso exchange rate. Several downtown businesses have already closed and others are barely hanging on.
Mall de las Aguilas retail businesses also report significant sales revenue decreases by thirty-three percent (33%) compared to sales only six months ago. The tumbling Mexican Peso exchange rate is blamed for this drop in sales.
Even large retail businesses like Walmart and H.E.B. are seeing a decrease of sales revenues due to the Mexican Peso exchange rate tumbling to 19-20 pesos per U.S. Dollar.
Restaurants are also experiencing lower sales and less customers dining at all of Eagle Pass’ finest eateries.
The next several weeks will be critical in determining if more businesses in Eagle Pass will be forced to close as a result of the spiraling Mexican Peso exchange rate.
One local retail merchant who requested anonymity stated that the Eagle Pass City Council’s increase of the international bridge fares from $3 per vehicle to $3.50 commencing October 1, 2016 as part of its new 2016-2017 fiscal year budget comes at a bad time when Mexican retail customers are not coming to shop and spend in Eagle Pass as a result of the Mexican Peso monetary exchange rate being as high as $20 per U.S. Dollar. The bridge fare increase will only help to expedite the decrease of retail sales in Eagle Pass, noted the merchant.
The Eagle Pass City Council approved the international bridge fare increases to $3.50 per automobile effective October 1, 2016 at its special meeting held on Tuesday, September 20, 2016.
