The Mexican peso is strengthening against the U.S. dollar, which could mean more money spent in Rio Grande Valley stores.

People are now getting more dollars for their Mexican pesos, something out of the ordinary for Alejandra Reyes.

Reyes said before, they had to multiply all prices in dollars by 20 to find out how many pesos they were spending to buy things.

Reyes visited McAllen from Reynosa to buy a computer and groceries, among other things. 

Some economists said the drop in the Mexican peso against the U.S. dollar, which has not been seen in over five years, was caused by pandemic-era inflation in Mexico. Their central bank raised interest rates to 11%.

"The Central Bank of Mexico has the commitment to raise interest rates always above the rate of inflation so that Mexicans and foreign investors know that their savings are protected against inflation," South Texas College economist Teo Sepúlveda said.

While the peso's value is good for people buying goods in America, Avalos Santos, who sells used cars in Reynosa, said the lowered peso is not good for his businesses.

"I sell cars using dollars, but I have to spend in pesos in Mexico. I have to exchange dollars to get pesos, so it's not worth it for me," Santos said, adding the customer gets a better deal because the dollar dropped in value.

Sepulveda recommends people that earn in Mexican pesos to buy big ticket items, such as electronics, in the United States instead of in Mexico. He believes that this will relieve pressure off the Mexican economy, and possibly lower inflation. 

Sepulveda also foresees this exchange rate of 17 pesos for one dollar will continue through the month of September.