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Mexican Currency Crisis Essay

520 Words3 Pages

Money is certainly not happiness. Yet money is the reason the world operates. Ancient civilizations discovered the significance of trading. They realized, it was vital for a good quality of living and survival. Mesopotamian tribes introduced the world a bartering system all the way back to 6000 BC. Bartering meaning exchanging goods and services for other goods or services in return. The current monetary system is, at some extent, no different than the early bartering system. We exchange goods for a certain quantity of money, but the currency rates in this time period are affecting millions of people, and I am interested in finding possible solutions. I am preparing myself to be an accountant. Money and the economy are my passions. Living in the border area has made a witness of how the devaluation of the Mexican peso compared to the American dollar affects families all over Mexico. Writing my topic proposal on the currency crisis will require a significant amount of research, which I will enjoy, and perseverance. The currency rates and the different types of monetary systems are definitely not simple to explain. Yet I consider it is fundamental for everyone to understand them, since money affects everyone’s lives. …show more content…

Having a Mexican payroll and living spending American dollars, can be considered deadly today. The Mexican peso has devaluated by more than 40%, making 1 American dollar valued at $18.25 pesos. However, the Mexican peso is not the only currency that has devaluated. The Brazilian real has devaluated 81%, the Canadian dollar 40%, the Russian ruble 128%, amongst others, all compared to the American dollar. On my topic final paper I will comment on monetary systems, explain what determines currency rates, address the causes of this currency crisis focusing on the Mexican peso, and will mention possible or hypothetic solutions to this

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