Presidio Feeling Effects of Value Drop in Mexican Peso

Presidio Feeling Effects of Value Drop in Mexican Peso

PRESIDIO, TX (KWES) - Like many cities in West Texas, Presidio is feeling the effects of the slowdown in oil.

But the city is also taking another hit, thanks to the drop in value of the Mexican Peso.

Right now, one dollar is the equivalent to just over 16 Pesos. While many border towns depend on shoppers from Mexico to stay afloat, the mayor of Presidio says the effects aren't all bad.

"Here, we depend so heavily on retail sales and we can definitely feel it," said John Ferguson, Mayor of Presidio.

Back in August, the value of the Mexican Peso hit an all-time low.

"It has made it a lot more expensive to shop in the United States for anybody who lives in Mexico," said Ferguson.

O'Reilly Street in Presidio, the main drag of the city, isn't bustling like years past. Ferguson says local businesses tell him it's a rough time.

Some stores, like the local Bealls are working with the downturn by offering more discounts to shoppers.

However, as the Peso's value goes down, Mexican residents are making different choices of where to shop.

"Ojinaga specifically has built some very nice stores over the past couple of years. So people might be more tempted to just stay in Ojinaga to spend their money," said Ferguson.

On the flip side, Mayor Ferguson says for people who want to go to Mexico to shop, it's a bargain. He says hotel prices are sliced in half.

"I needed to buy a musical instrument about a week ago and I was surprised at how affordable it was. I thought I was going to have to pay maybe $100 more," said Ferguson.

As the Peso remains at a steady low, Presidio is still moving forward, looking for more ways to bring money to the city.

"We're not wringing our hands and thinking all is lost. It's kind of tough, but we're moving forward and just doing the best we can," said Ferguson.