As the Mexican peso hits a two-year high, shoppers, resellers, and businesses on both sides of the border feel the impact.
The Mexican peso has reached its highest level in nearly two years, trading at around 17 pesos to the U.S. dollar, and the shift is beginning to reshape consumer behavior and business activity throughout the Rio Grande Valley.
Just a year ago, one U.S. dollar was worth more than 20 pesos. Today, that same dollar has significantly less purchasing power, a change that benefits Mexican shoppers while creating new challenges for U.S. consumers and local currency exchange houses.
“The new reality is that Mexican products will likely be more expensive for us,” said Teo Sepúlveda, an economist at South Texas College. “Maybe not by much, but the days of extremely cheap prices are over.”
In 2025 alone, the peso appreciated nearly 16% against the dollar, and economists say the trend has continued during the first few weeks of this year. As a result, U.S. goods have become more affordable for Mexicans who regularly cross the border to shop in the Valley, either for personal use or to resell.
“For those of us who come from Mexico, it benefits us because the dollar has weakened,” said Regina Escareño, a resident of Reynosa. “It’s more convenient for us to cross and buy things in the United States.”
Others say the strengthening peso has created new business opportunities.
“For resellers, it’s easier to make money,” said Fernando Santiago, also from Reynosa. “We buy clothes, toys, and candy and sell them for more in Mexico.”
While Mexican shoppers are seeing gains, local currency exchange businesses in the Valley are experiencing the opposite effect. Several report a slight decrease in the number of customers since the beginning of the year.
“We’ve only been seeing this economic phenomenon for a couple of weeks,” said Denisse López, owner of Lone Star Money Exchange.
López states that currency fluctuations are difficult to predict and depend not only on supply and demand. Global market conditions, differing interest rates, remittances, and political decisions also play a role.
“The dollar is weakening globally,” López said. “Interest rates are different, investment is flowing to Mexico, and political decisions will be very important.”
According to Sepúlveda, uncertainty surrounding U.S. immigration and trade policies has also slowed investment across the country, especially along the border.
“Investment has really slowed down throughout the country, and even more so along the border,” he said.
Economists say the main beneficiaries of the current exchange rate are exporters and resellers in Mexico. However, Sepúlveda cautions that the peso’s strength could represent a long-term shift, rather than a passing trend.
“The dynamics tend to fluctuate,” he said. “Right now, things are changing, and we don’t know what the future holds.”
Sepúlveda says that by March economists should have a clearer idea of whether the peso will remain strong or return to its historical range.
