How does the change on dollar influence on the Mexican industries?
The change on the dollar’s cost generates different type of reactions that can either benefit or affect different industries at Mexico, which is the neighboring country with a very closed business relationship. Today we will explain further how different sectors in Mexico are influenced.
“Mexico has many business relationships with U.S. companies, so everything that happens between both countries influences their economies, fortunately, that intimate relationship has helped both countries support each other during difficult times and help each other grow on their greatest times”, said Salomon Juan Marcos Villarreal, president of Grupo Denim, a Mexican manufacturer company.
Here are some of the most important Mexican sectors and how they are influenced by the change of dollar’s price:
- Textile – Companies dedicated to textile and cloth manufacturing have implemented increases on prices as it is not possible to absorb the whole costs that these changes have caused, especially when they import or buy raw materials that are invoiced in dollars.
- Maquiladoras – Many of them have tried to substitute imported supplies by local ones, as the ones coming from USA have increased, while maquiladoras have been absorbing these costs in order to not increase the final prices to their customers.
- Financial – The national banking sector does not seem to have risks, as their financings are mostly done with low interest rates.
- Supermarkets – The dollar’s price change has not affected the basic consumer products, mainly because the products sold on the national market are produced in Mexico.
“Mexico has a strong and solid economy, the change on the dollar’s price will of course influence on different sectors, but one of the main advantages of Mexico’s current economy is that it is able to get over obstacles and hard times, as we could have possibly not been able years ago”, added Salomon Juan Marcos Villarreal.