Title: Drop in Exchange Rate Triggers Sale of Dollar, Leading to Shortages
Subtitle: Exchange Centers Experience Decrease in Demand as People Hold onto Dollars
Date: [Current Date]
In a surprising development, the exchange rate has plummeted, leading to a surge in the sale of the dollar, with some even hoarding the currency. Ricardo García, president of the specialized section of exchange houses in the National Chamber of Commerce (Canaco), revealed that the people of Juarez are taking advantage of this decline to acquire US currency at an average price of 17.10 pesos per dollar.
The sharp drop in the exchange rate has caused a shortage of dollars, as those who possess the currency refuse to change it at a rate of 16 pesos, perceiving it to be an inadequate amount. García explained, “This very low price has caused a shortage of dollars, that is, people do not want to change their dollars at such a low price, and that is why we have seen the uptake in exchange centers decrease. Demand continues to be greater than supply.”
According to García, this is the lowest price observed since 2015, prompting those who frequently visit El Paso to seize this opportunity and acquire US currency. He stated, “A lot has changed in a short time; let’s remember that just in December of last year, the dollar was sold for almost 21 pesos, so we are talking about more than four pesos that have gone down in this time.”
García further added that it is expected the week will come to a close with an exchange rate of 16 pesos, and by the end of the year, that rate could drop even below the 16-peso barrier. However, he cautioned that there may be a limit to how much further the rate can decrease, suggesting it may only drop by a few cents at most.
Meanwhile, in the Forex currency market, the Mexican peso experienced further appreciation, with it being sold at 16.74 pesos. Investors are closely tracking the forthcoming monetary policy decision of the United States Federal Reserve, which is expected to raise interest rates by 25 basis points, potentially signaling the end of the bullish cycle.
As the impact of the declining exchange rate continues to unfold, it remains to be seen whether this trend will persist or if market forces will lead to a rebound in the value of the dollar. Investors and individuals alike are eagerly watching to see how these developments unfold in the near future.
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