Dollar at 17 Pesos: Challenge or Relief for Nuevo León's Economy?

.## Imports: More Accessible Inputs, but with NuancesOn the other hand, regarding imports, Nuevo León primarily purchased:- Semi-finished products of non-alloy iron or steel: $232 million USD (4.8%)- Parts and accessories for machines: 4.79%- Parts and accessories for motor vehicles: 4.64%Additionally, the main countries of origin were the United States ($1.839 billion USD), China, and South Korea. For companies relying on imported inputs, a lower dollar can translate into reduced production costs, though it doesn’t always offset the loss in export revenues.## The Inexpensive Dollar as a Challenge for ManufacturingFrom a business perspective, the impact of the exchange rate is not uniform. In an interview for Líder Empresarial, Jesús Francisco López—Director of Institutional Relations at CAINTRA—points out that a low dollar primarily represents a challenge for exporters. “More than an opportunity, it is a challenge, as it is more favorable for exporters to operate with an exchange rate moving in the opposite direction,” he explained.Nevertheless, he highlighted the state’s resilience: *“The latest quarterly data indicates that exports grew by 5%, and Nuevo León continues to export over $66 billion USD.”*Furthermore, López emphasized that the state’s strength lies in its integration into large value chains, though he acknowledged that a more balanced exchange rate would allow for greater export dynamism.## How Does the Exchange Rate Affect Businesses Depending on Their Position in the Production Chain?On the other hand, from the public sector, Jorge A. Gámez—Director of Productive Chains at Nuevo León’s Secretariat of Economy—agrees that the effect of an inexpensive dollar depends on each company’s position within the production chain. “Some manufacturers purchase their commodities in dollars, while others do so in pesos. For some SMEs that sell in the United States, a cheaper dollar significantly impacts them,” he explained.However, he also acknowledged that for other companies, it can be an opportunity to acquire dollars at a lower cost and prepare for future scenarios.## An Environment of ContrastsUltimately, the current exchange rate environment makes it clear that there is no single interpretation. While some sectors face narrower margins when converting dollar revenues to pesos, others benefit from lower import costs or strengthen their financial position.In an export-oriented state like Nuevo León, the inexpensive dollar is proving to be more of a structural challenge than a widespread advantage, in an environment where competitiveness depends on multiple variables beyond just the exchange rate.### You Might Be Interested In:The post