The Mexican Peso & Brazilian Real Are Collapsing

Tyler Durden's picture

Back over 15 / USD for the first time since March 2009, the Mexican Peso is tumbling hard this morning... and the Brazilian Real is also tanking (back near 10-year lows) - no clear catalyst aside from further weakness in oil producer and EM FX sentiment.


Peso under pressure


Back to March 2009 lows..


And the Real is close behind (back near 10 year lows)


As Oil Producers FX rates push to new cycle (or record) lows...



Charts: Bloomberg

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Ghordius's picture

not that long ago the IMF proudly declared the Mexican Peso as one of the best managed currencies of the world

and what do the best central banks of the world? engage in currency war

Haus-Targaryen's picture

Ghordo - 

Should Mexico, the US and Canada share a currency for the sole reason of preventing the Mexican Peso from getting "shaken like a rat by a terrier"?  


TeamDepends's picture

Time to be adding to our stack d'argent, as this could be the final fire sale.

max2205's picture

Ah..back to cheap Mexican donkey dem tatttaers 

lakecity55's picture

I am considering an Au purchase today.

Ghordius's picture

why should I, as a foreigner, suggest such thing? in my eyes, it smacks of a certain kind of imperialism

the whole point of the eurozoners banding together was to somewhat insulate their currency zone's economies from the tides of the Mighty Dollar

a shared currency zone with the global reserve currency? wouldn't that be about the same as switching to the dollar without having it's advantages? the process called dollarization?

I have no clue why Mexicans or Canadians should ever come to such a conclusion. Nevertheless, it's their currencies, aren't they?


you probably remember that I predicted it could become a bit rough, for small and medium sized currencies at a later stage of this currency war. the question is what is driving this move, and I don't look much at the Americas in general so can't say much about this, except that it fits my predicted pattern

disabledvet's picture



Now pay for your own defense next time.


I mean negative rates in Denmark?


THAT my friend is serious cowbell!

Vylahkinnen's picture

Ah come on! We can solve this easily. End the Dollar. End the Euro. It is time for the only reaaal currency - the "Ameuro"! See, problems solved. And who needs Gold again? Lunacy! You can question the existence of God, but thou shall never question the authority of the almighty Central Wankers.

Brought to you by:

Ghordius's picture

"Now pay for your own defense next time" - are you demobilizing? don't you worry, we pay. oh, boy, you don't seem to know how much we paid and still pay

Haus-Targaryen's picture

"we paid"  

Expand upon this thought.  

Bangin7GramRocks's picture

Lower airfares. More buying power in Mexico. This gringo is considering a nice long luxury getaway. How do I politely ask if the resort is well guarded and surrounded by walls?

j0nx's picture

Any gringo that steps one foot south of the border deserves what they get. Mexico and central America are lawless states run by narco-terrorists. I chuckle inside when I see expats saying that the water is warm come on in guys down in their villas south of the border. The water is fine alright. Right until it isn't and the natives are banging on the door.

PartysOver's picture

Some areas I would agree. However some areas are not that way. Cheap land is an insurance policy if the ECB cards fail. Then the USSA will be no better and might even be worse.

xavi1951's picture

Baja has marine check-points everywhere and the federale in between.  Some cartel people have been arrested there but I have never felt in danger and I go there every year.  La Paz is better than Cabo that has more tourists and more punk criminals.  The murder rate in Baja is lower than L.A., on a per capita basis.

Big Brother's picture

I've never felt unsafe in Cabo.  There are military check points entering into San Jose from the airport and on the way to Torre de Santos (only highway in and out) and as gunships floating in the sea of cortez.  Albeit the Lucans need to rebuild from the last hurricane hit before I visit there again.

joego1's picture

I've owned property in Mexico for 35 year with no serious problems. I think the bandidos are in the USA.

joego1's picture

I've owned property in Mexico for 35 year with no serious problems. I think the bandidos are in the USA.

Oldrepublic's picture

The above posters are correct, Mexico is much less dangerous than many people in the US imagine. I have driven extensively in all parts of Mexico and had no problems with violence

Fred Reed is an American living in Mexico.He has posted a lot of stuff on Lew

He recently posted an article entitled: Realty Check Mexico

worth reading

MEFOBILLS's picture

I've owned property in Mexico for 35 year with no serious problems. I think the bandidos are in the USA.


The exception doesn't make the rule.  Statistics are averages over large populations. 

The Mexinvasion is real.  Bandidos are on both sides of border.  The worst bandits are those who hide behind the money and pervert law to their rent seeking ends.   This then creates a subordinated Mexico. 

Consider, Mexico has fisheries, productive land, natural resources.  It should be one of the richest countries in the world.

By not extracting wealth via efficient labor and use of natural resources, then a people will become poor.

Livermore Legend's picture

The Difference between IGNORANCE and STUPIDITY is that the former is Curable upon Application and Effort; while the Latter is a STATE OF BEING, rarely cured.

jose.six.pack's picture

Like the US would like to protect the MXN. Why would they?

The US somewhat controls the inflow of illegal immigrants, for which earing in USD allows to support their families in MXN.

Equality is not where the profits of the relationship between Mexico and the US come from.

Clueless Economist's picture

I had a horrible nightmare last night.  An ISIS sleeper cell had kidnapped Greenspan, Bernancke, and Yellen and had them kneeling in the California desert wearing orange jumpsuits.  They demanded the US raise interest rates or they would decapitate one each day.

Thank God it was not real.  Imagine the three architecs of American prosperity and exceptionalism being beheaded by savages.

nuubee's picture

That is a nightmare, I wouldn't want the sacred ground of Burning Man to be polluted.

PartysOver's picture

WTF, a Burner on ZH. lol

IridiumRebel's picture

everything is collapsing

Eastwood's picture

alriiiiight, my flautas imports just got cheaper, mayne.

Polymarkos's picture

Great. This will just drive more Mexitrash onto our welfare rolls.

FreeShitter's picture

There goes my tequila and cheap pussy.

Doubleguns's picture

No, its getting cheaper.....just saying. The tequila I am not sure about. 

Romney Wordsworth's picture
Romney Wordsworth (not verified) Jan 30, 2015 9:37 AM

<== Yo Gubbmint cheese

<== NACHO cheese!

IPURDOM75's picture

Jim Willie predictions seems to come true...

firstdivision's picture

With the amount of grief that the Brazilians give me in BF4, I applaud this.

franzpick's picture

The Danse Macabre of the currencies continues.

disabledvet's picture

Yeah this is pretty ugly.


Starting to look like 1983 more than 1984 actually.


Lotta silver in Mexico.


Lotta military on that border too.


Long Walmex.

Latitude25's picture

Hugo Salinas Price has been wanting to put Mexico on a silver standard.  Maybe he'll soon get his way.

Oldrepublic's picture

regarding Hugh Salinas Price:

a very interesting man, he flew out to Greece a year or  so back with Max Keiser on his own private jet to talk to the Greeks about a new silver standard. This is his latest piece on the Global central bankers and money printing called

Folly Triumphant


Bumbu Sauce's picture

Just come on over to mehico norte!  A quick wade across the Rio and you too can work for cash, suck up free benefits, and modify your very own 20 year old Honda Civic with primer, wings, and such.  You can even operate it burracho muchacho!

America, land of the free if you aren't el citizen.

jose.six.pack's picture

We Peña-Nieto'ed some folks.

Dr. Engali's picture

The fucking asinine central bankers are going to fuck the whole damn world over before this is done, and people are too stupid to grasp this fact. Maybe they'll figure out when they have to start digging mass graves. Well, I guess there won't be any graves if everybody is vaporized.