"if the mexican peso" depreciates 50% against us dollar how much
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Hello There!
If the mexico peso depreciates by 50 % against the US dollar then the imports from the US will become expensive. The exports from mexico will become cheaper. The exchange rate between the currencies will higher. Mexicans who go to the US will have less purchasing power.
I hope this answers your question.
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Answered by
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For effortlessness, let us accept that 1 peso is right now exchanged for 1 USD.
On the off chance that the peso deteriorates by half, it loses half of its incentive against the dollar.
Consequently, 1 peso would now exchange for 0.5 USD, so one would require 2 pesos to buy a full USD.
To return to its unique esteem, the peso would need to increase in value by half.
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