Dreaming...Anyone know of any good dive deals in Cozumel?

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Sorry, but that's not at all how currency exchange works and continues to prove that you do not understand. The relative value to the CAD to the USD is completely irrelevant in my solution (of shops charging in pesos). I do not have to buy a single (US) dollar.
But currency exchange rates are all interrelated, and I suspect that this is the crux of the biscuit. Are you suggesting that if the US$ vs the Peso were to stay the same and the Canadian Dollar were to fall 10% against the US$, the Canadian Dollar exchange rate could stay the same vs the Peso? As I said, I am an engineer, not an economist, but I do not see how that could possibly be true. Otherwise someone could buy a bazillion Pesos with Canadian Dollars, US$ with Pesos, and then Canadian Dollars with US$ and make a killing. Granted, such things may exist for fractions of a second where computer trading might be able to take advantage of it (I really don't know), but I can't see how such a thing could exist in steady state.

(BTW, if that were the way things worked, the solution to your problem would be simple: Just buy Pesos with your Canadian Dollars and pay your dive bill with them at the US$-Peso exchange rate.)

And before you go off saying that it's somehow unfair to keep the US$ constant and set everything relative to it, it's only the frame of reference. You could hold the Canadian Dollar, or the Euro, or the Saudi Riyal, or the South Korean Won constant and let everything else float against it, and nothing would change.

Lastly, I'll just say that if dive ops set their rates in Canadian $ and kept them the same, diving would cost the same for you but get cheaper for me. Would that make you happy?
 
I'm not interested in a macroeconomic discussion on (practically) every currency and economy in the world are interconnected. Of course they are. What the CAD dollar does against the USD, however, is not in lock step with what it (CAD) does against the MXN peso. Far, far from it.

I did not ask for the CAD, the Euro, the Won or any other foreign currency being used in Mexico. Again, these are straw men arguments that ignore what the crux of the argument are about: The use of the peso in Mexico.

"Are you suggesting that if the US$ vs the Peso were to stay the same and the Canadian Dollar were to fall 10% against the US$, the Canadian Dollar exchange rate could stay the same vs the Peso?" I don't need to say it. I'll let the facts speak: The CAD to USD rate on March 1, 2020 was 0.7462 ($1.3402). The CAD to the MXN peso was 14.6402 ($0.0683). Fast forward to May 1, 2020. The CAD to USD rate was 0.7090 ($1.4105). The CAD to MXN? 17.6200 ($0.0567). As you can quite clearly see, the value of the CAD to the USD plummeted while, inversely, the CAD gained considerable strength against the MXN peso.

Ergo, my CAD buys more in MXN pesos on May 1, 2020 than it did on March 1, 2020. My CAD buys less in the States. But I'm not diving in the States. By artificially pricing goods in Mexico, using the USD, instead of it costing less, as it should for me, it's costing more. A lot more. This, and only this, is what I, and several others, have been trying to illustrate.
 
I'm not interested in a macroeconomic discussion on (practically) every currency and economy in the world are interconnected. Of course they are. What the CAD dollar does against the USD, however, is not in lock step with what it (CAD) does against the MXN peso. Far, far from it.
I am not saying that it is. I'm saying that what the US$ does against the peso is also a critical part of the equation, and yes, of course, that is because the price is quoted in dollars, but that does not mean you are getting screwed relative to US citizens because of it. If the price of diving were in pesos and it didn't change, you are correct, we would all be diving cheaper. But "didn't change" is the operative phrase, and I am certain that we would see more benefit than you would.

"Are you suggesting that if the US$ vs the Peso were to stay the same and the Canadian Dollar were to fall 10% against the US$, the Canadian Dollar exchange rate could stay the same vs the Peso?" I don't need to say it. I'll let the facts speak: The CAD to USD rate on March 1, 2020 was 0.7462 ($1.3402). The CAD to the MXN peso was 14.6402 ($0.0683). Fast forward to May 1, 2020. The CAD to USD rate was 0.7090 ($1.4105). The CAD to MXN? 17.6200 ($0.0567). As you can quite clearly see, the value of the CAD to the USD plummeted while, inversely, the CAD gained considerable strength against the MXN peso.
But how did the US$ move against the peso in the same time period? If it moved positively as well but more than did the Canadian dollar (which I suspect is the case), your point is moot.

Ergo, my CAD buys more in MXN pesos on May 1, 2020 than it did on March 1, 2020. My CAD buys less in the States. But I'm not diving in the States. By artificially pricing goods in Mexico, using the USD, instead of it costing less, as it should for me, it's costing more. A lot more. This, and only this, is what I, and several others, have been trying to illustrate.
Even if all you are saying is correct (and I am not at all convinced that that is the case), then know that it is within your power to set the price in pesos yourself and make the US$ to CDN$ exchange rate irrelevant. All you have to do is get pesos from an ATM and pay your dive bill with them. Pesos are pesos; the dive op won't demand more of them from you just because you are Canadian. And, by the way, you could make a fortune moving money around the triangle with the three currencies.

Also BTW, when I am on Cozumel, I pay for everything in pesos except my hotel bill (they give me a discount for paying in US$ cash), including my dive bill. If you did the same we wouldn't be having this discussion; you and I would pay exactly the same for a dive. It wouldn't make a bit of difference to your bottom line but it might make you feel better.
 
Otherwise someone could buy a bazillion Pesos with Canadian Dollars, US$ with Pesos, and then Canadian Dollars with US$ and make a killing. Granted, such things may exist for fractions of a second where computer trading might be able to take advantage of it (I really don't know), but I can't see how such a thing could exist in steady state.

It's called arbitrage. He doesn't get the concept of how everything IS related and people can make money at it. But, they can also lose their butts, too.
 
By artificially pricing goods in Mexico, using the USD, instead of it costing less, as it should for me, it's costing more. A lot more. This, and only this, is what I, and several others, have been trying to illustrate.

^^^ THIS ^^^

in all honesty, after reading most of the posts from those who disagree with what we are saying, i think the main reason we are not seeing eye to eye is that for some reason, some of you feel that even if the goods and services were advertised and priced in the local currency (mxn peso) that those same advertised prices would change all the time based on the fluctuating usd rate. and my question is simple.....why would that happen ?

of course businesses can choose to do this but how does that make any sense ? any business should price their goods and services in their own local currency. and the only thing that fluctuates is the cost to the buyer. and that cost is based on what ever their currency is worth at the time.

here is an odd example.....in ontario canada we have wilderness outfitters who primarily deal with americans coming up here for hunting and fishing. some of those outfitters price their services in usd. why ? because their clientele is 95% american. that's why. do i get that ? yes i do. but whether anyone agrees if that is ok to do or not, the fact is, that if the cdn / usd exchange rate changes, that will either cost me more or less as a canadian. and that is wrong. my cost should be consistent. the americans cost is what should go up or down based on the currency exchange at the time.

so if that same outfitter was to price their services in canadian dollars, do you think they would change that advertised price if the usd rate changes ? why would they do that ? that makes no sense.

the reality probably is that many coz businesses deal in usd to pay many of their expenses for some reason. as some have mentioned, shops will at times pay staff for example in usd (i still don't understand that unless they are actually a registered u.s. company), and perhaps they may also pay other daily expenses in usd as well. so by pricing / charging in usd they keep a consistency in their cash flow. i can understand why they would do this in this case.

but the fact remains, that if they were pricing goods and services in pesos, the cost to "ALL" foreigners will go up and down according to the exchange rates. that is fair. that is reality. all we are saying is that from a canadian stand point, it does not seem fair that the american cost stays constant while ours is changing radically. if shops want to do this, that is obviously their prerogative. but from our view point (and ONLY OUR VIEW POINT) this seems unfair.

like everyone else here, i eat at many different local restaurants on coz and the mainland. i cannot speak for everyone's experience, but i see menus priced in pesos, NOT usd. what i do see is that the restaurant sometimes adds a second row of prices for the usd and is always adjusting the usd price (NOT THE MXN PRICE) on the menu to make it easier for the majority of travelers (who are from the u.s.) to easily understand what it costs if they choose to use usd.

what i do not see is the other way around. i do not see menus priced in usd and then see the local mxn prices being adjusted up and down according to the exchange rate that week. that would make no sense at all.

if others have a different experience with this example pls share. but this what i see when i travel.

even in st maarten for example. they have 2 prices on menus many times. the local currency and the usd price. the local currency stays the same (obviously it changes at times due to inflation) and the usd price is adjusted and added to the menu to make it easier for americans. same example, different country.

why in gods name would my favorite restaurant on st maarten price their meals in usd and then change the local price as the exchange rate changes ? that would make no sense to do it there, and it makes no sense (to us at least) why they would do that in mexico.

last example. is anyone following the real estate market in playa ? well i have. some properties are priced and advertised in usd. why ? because the owner is most likely american and wants a consistently advertised price to a market that is primarily american.

other properties are priced in pesos. so what does that mean to a canadian buyer ? it means that the usd property is now not affordable, while the peso property is now cheaper.

it means that the usd property costs an american the same, while the peso property is now cheaper for them as well.

what i do not see, is the properties priced in pesos all of a sudden being increased. that makes no sense !!

peace out. lets all pray in our own way that the violence in your county stops. we are sad and sickened here to see what has happened and what continues to happen. i hope you all are safe and well.
 
You continue to completely miss the entire crux of this and it's no more apparent when you say "then all you have to do is get pesos from an ATM and pay your dive bill with them. Pesos are pesos". This is true only when a good or service is priced in pesos. When it's pegged to the USD, it's not. When it's pegged, I must pay the equivalent of what the CAD is to USD is to the MXN peso. This is not the same equation as when prices are in pesos where I have to pay the equivalent of CAD to MXN. You do see there is a second, artificial, variable introduced in the pegged to the USD scenario, that does not exist when something is only priced in pesos, right? Pesos are not pesos when a price is pegged to the USD.

"Even if all you are saying is correct (and I am not at all sure that is the case)" Please, by all means, go see for yourself. There's plenty of sites that list historical exchange rates but I used this one if you'd care to verify the data: XE Currency Table: CAD - Canadian Dollar.
 
It's called arbitrage. He doesn't get the concept of how everything IS related and people can make money at it. But, they can also lose their butts, too.

Post #152
"I'm not interested in a macroeconomic discussion on (practically) every currency and economy in the world are interconnected. Of course they are."

Which part of that might suggest to you that I do not understand the concept of economic interconnectedness?
 
You continue to completely miss the entire crux of this and it's no more apparent when you say "then all you have to do is get pesos from an ATM and pay your dive bill with them. Pesos are pesos". This is true only when a good or service is priced in pesos. When it's pegged to the USD, it's not. When it's pegged, I must pay the equivalent of what the CAD is to USD is to the MXN peso. This is not the same equation as when prices are in pesos where I have to pay the equivalent of CAD to MXN. You do see there is a second, artificial, variable introduced in the pegged to the USD scenario, that does not exist when something is only priced in pesos, right? Pesos are not pesos when a price is pegged to the USD.

"Even if all you are saying is correct (and I am not at all sure that is the case)" Please, by all means, go see for yourself. There's plenty of sites that list historical exchange rates but I used this one if you'd care to verify the data: XE Currency Table: CAD - Canadian Dollar.

Pay in pesos like I do and we will always pay the same for a dive.

Where you and I differ is your insistence that somehow Canadians get the sh*t end of the stick relative to US citizens simply because the price is set in US$. If you get fewer pesos for your dollar than I do for mine it has nothing to do with which currency the price is quoted in, it's due to the difference between CDN$ to pesos and US$ to pesos exchange rates.

I get it, and I have from the start. When prices are set and are unchanging in US$, it costs you guys more CDN$ while it costs us the same US$, and you do not like it. But, because of the changing relative exchange rates, there is no scenario I can think of where things would stay the same for both of us when the CDN$ falls relative to the US$. Set the pricing in CDN$ if you want; diving would stay the same for you but for me it would get cheaper. Set them in pesos, and if the US$ buys more pesos than does the CDN$, I get more for my buck than you do for yours; I still dive cheaper. As the peso falls in value relative to our respective currencies and the prices stay the same in US$, we all pay more for diving in pesos.

A lot of a dive op's expenses are in US$, or so I am told. If they priced in pesos and did not change, they would (again, according to them) go bankrupt, and then there is the question of inflation internal to Mexico. They have to (same disclaimer) keep increasing prices in pesos to stay solvent, and which currency the price is quoted in is irrelevant. The only thing that "pegging" the price in US$ does is to make their necessary (same disclaimer) price increases in pesos automatically track the US$ to peso exchange rate. Since the vast majority of their customers are from the US, that makes more sense to them than any other way to structure their pricing.

Again: Pay in pesos like I do and we will always pay the same for a dive.
 
Post #152
"I'm not interested in a macroeconomic discussion on (practically) every currency and economy in the world are interconnected. Of course they are."

Which part of that might suggest to you that I do not understand the concept of economic interconnectedness?

The fact that the two views contradict one another.
 
The fact that the two views contradict one another.
Oh, good grief. I am saying, explicity, that the economies of the world are interconnected. And that I have no interest in discussing or debating this. Does that help with your comprehension?
 
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