Arizona-Mexico Tourism - Exchange Rate

The Mexico/U.S. foreign exchange rate has risen significantly since 2014, reaching an all-time high of 21.4 pesos per dollar in January 2017. While the dollar has declined modestly in recent months, it remains elevated. As the dollar rises against the peso, it becomes more expensive for Mexican visitors to shop in the United States. According to the most recent Mexican visitor’s survey, 57.4 percent of visitor parties identified shopping as the primary for their visit 1.

$Mex/$US

Trade Weighted

The Real Trade Weighted Value of the Dollar for Arizona is the inflation-adjusted value of the U.S. dollar against the currencies of countries to which the state exports. The real exchange rates are aggregated across countries for each state using the annual average export share to the country. For the most recent year where export share data is not available, the prior year's number is used instead. The indexes should allow analysts to more precisely identify the exchange rate movements that most affect demand for a state's exports. For more information visit the Federal Reserve website.

The Major Currencies Index is a total-trade (imports+exports) weighted average of the foreign exchange value of the U.S. dollar against a subset of the broad index currencies that circulate widely outside the country of issue. The averages of daily figures, this series is price adjusted. Major currencies index includes the Euro Area, Canada, Japan, United Kingdom, Switzerland, Australia, and Sweden. For more information about trade-weighted indexes see the Federal Reserve website.

The Broad Index is a total-trade (imports+exports) weighted average of the foreign exchange value of the U.S. dollar against the currencies of a broad group of major U.S. trading partners. The averages of daily figures, this series is price adjusted. Broad currency index includes the Euro Area, Canada, Japan, Mexico, China, United Kingdom, Taiwan, Korea, Singapore, Hong Kong, Malaysia, Brazil, Switzerland, Thailand, Philippines, Australia, Indonesia, India, Israel, Saudi Arabia, Russia, Sweden, Argentina, Venezuela, Chile and Colombia. For more information about trade-weighted indexes see the Federal Reserve website.

 

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Citations

1. Pavlakovich-Kochi, V., & Charney, A. H. (2008). Mexican Visitors to Arizona: Visitor Characteristics and Economic Impacts, 2007-08. Economic and Business Research Center, Eller College of Management, University of Arizona.

Photo of backpack and hat at train station courtesy of Shutterstock.