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- How to Eliminate Currency Risk
How to Eliminate Currency Risk
Plus Mexico’s Ancient Wellness Drink
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This week, we’ve got a lineup that’s as refreshing as a cold tepache on a sunny day. Find out how to eliminate currency risk before buying or building your dream property, and get the lowdown on IMSS essentials for household staff. Meanwhile, Mexico’s aiming for the stars with a bold new National Space Law.
Who knows, maybe we'll soon be sipping margaritas on Mars! 🍹🚀💚
📣 Que Paso
🏛️ Student accidentally finds the hidden ancient Mayan city hidden for centuries beneath Mexico's jungle canopy.
🌋 Popocatépetl’s eruption last week sent ash clouds soaring and tracked by NOAA all the way to Sarasota, Florida. Authorities are warning people to stay 12 kilometers from the crater. (Call me no fun, but it’s mind-boggling anyone would even try!)
👑 The 73rd Miss Universe competition is coming to Mexico City on November 16. Check out the stunning photos from the Miss Universe 2024 Catrinas Gala, where contestants presented a unique and dazzling interpretation of Mexico’s iconic Catrina.
🏠 Economic activity dropped in Coahuila, Campeche, Michoacán, Jalisco, and Tabasco – with Tabasco hit hardest – raising questions about the impact of recent federal projects.
✈️ Viva Aerobus just rebranded as “Viva,” with a fresh look and 11 new features aimed at giving real travelers more control over their plans.
🚀 Mexico’s Senate is reviewing a new National Space Law to support homegrown satellite tech and join NASA’s Artemis mission to build a lunar base by 2026.
The Fastest Way to Get Foreign Currency In Hand
Last-minute travel plans? Forgot to order currency? No problem! With Currency Exchange International, you can get your foreign currency delivered quickly from the same provider banks use. Order online today for home delivery and be ready for your trip in no time!
🍎 Your Health Pulse
How the Medical Buddy System Can Save Your Life
Accidents happen…often when we least expect them.
Should one of these accidents happen while you are living as an expat in Mexico, you will need to be able to communicate with medical professionals, handle payments, and be able to heal at home after your care.
These are all situations that typically require the help of someone else.
It’s important to have a medical buddy system no matter where you live. But, in Mexico, this is even more important.
🏠 Real Estate Roundup
Eliminate Currency Risk before You Buy or Build Property in Mexico
Buying or building a home in Mexico is a dream for many expats, but currency fluctuations can turn it into a financial nightmare.
Between ever-changing exchange rates and unexpected fees, even small shifts can cause massive increases in your budget.
We sat down with George Reavis, the founder of MexEdge, a company that gives expats the power to eliminate currency risk, ensuring their investment is secure and their budget is predictable.
Q: How do fluctuating US dollar-Mexican peso rates impact real estate transactions, and what challenges arise if buyers don’t hedge?
George: If buyers – or even those who are building – don't hedge, they risk facing unexpected costs due to currency fluctuations.
The USD to Mexican peso exchange rate is highly volatile. For example, if you're buying a house and sign your purchase contract when the peso is at 20, by the time you close – which can take three to six months – the rate might change dramatically. This fluctuation can significantly increase the price you pay for the property. You might find that a $500,000 condo is now costing you $550,000 at closing.
I learned this firsthand when I was building houses in Sayulita. We thought we were being conservative with our projections, but the peso dropped significantly during construction, costing us over $150,000 USD due to unhedged currency risk.
Q: How are you able to lock in currency rates for clients?
George: We lock in currency rates for clients through our banking partners using forward contracts, a financial tool that guarantees a fixed rate over time. With this approach, clients can secure exchange rates at a lower fee than typical banks, with only a 10% deposit required to hold the rate for up to a year+. This method protects clients from fluctuations, ensuring stable costs for their transactions.
Let’s say you sign a contract on a house on January 1, with a closing expected on March 31. We work with buyers and their realtors to lock in the exchange rate until the day they close. We create individual pro formas for each project based on payment amounts and dates, ensuring clients understand how everything works and how they can save money.
Want to Protect Your Real Estate Investment in Mexico?
Join us for an exclusive virtual event with George Reavis from MexEdge, where he’ll dive deeper into the strategies that can lock in your budget and protect your investment. Get expert insights and answers to your questions – live!
📍 Immigration Essentials
The High Cost of Non-Compliance: IMSS Essentials for Household Staff
Hiring household staff or employees in Mexico comes with unique legal obligations. Failing to follow the proper procedures can have serious consequences and may cost you a lot more than you expect.
Like not paying into social security.
Next up in our Household Staff Series, C.P. Jorge Tovar from Corporativo Grupo Babylon Contadores y Abogados breaks down what you need to know to stay compliant with IMSS.
Q: What are the obligations related to social security for household staff?
Jorge: Despite your economic activity, you are legally required to register household employees – such as maids or gardeners – with the Mexican Social Security Institute (IMSS).
Failing to comply with labor regulations can result in substantial financial penalties ranging from 12,000 to 160,000 pesos per month.
If an unregistered employee claims they are working for you, authorities may impose fines and backdate social security payments.
The fines can accumulate back to the start of the employment relationship, even if that was years ago. Authorities may grant 10 business days to resolve noncompliance issues, but all back payments must be made.
Also, know that IMSS, immigration authorities, and tax offices are increasingly sharing data to detect unregistered workers.
If you don’t have contracts in place with your employees, it’s important to do that as soon as possible.
That way, if IMSS comes to collect fines, you are in the clear even if the contract was recently drawn up.
Miss last week’s issue? Want to know WHY you need a contract for your household staff (yes, even if they are part time)? Check it out here.
🪷 Viva Wellness
Tepache: Mexico’s Ancient Wellness Drink
Tepache is more than a drink — it's a centuries-old Mexican tradition. Made from pineapple rinds, piloncillo (raw cane sugar), and warming spices like cloves, it’s tangy, refreshing, and mildly alcoholic (under 2%).
Cherished for its health benefits and used in ancient rituals by the Nahua and Mayan peoples, tepache is packed with probiotics, vitamins, and anti-inflammatory enzymes that support gut health and immunity.
Read on for more on tepache’s health benefits, its cultural significance in Mexico, and how to easily make it at home.
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🎉 Vamos! Can’t Miss Events
🎭 La Llorona: Oct 4-Nov 17, Xochimilco, Mexico City
Celebrate 31 years of La Llorona in the enchanting canals of Xochimilco! This spectacular performance blends music, theater, and dance, bringing one of Mexico's most iconic legends to life. Float through the Tlilac Lagoon on a trajinera as the haunting tale unfolds around you. Performances take place on weekends and special dates during Día de los Muertos, making it the perfect cultural experience. Click here for more info.
🌈 Carrera Rainbow: Nov 10, Puerto Vallarta
Join the Carrera Rainbow on November 10th and show your pride! This 2k and 5k run welcomes everyone—regardless of gender or identity—along the scenic Avenida Francisco Medina Ascencio. The event supports local LGBTQ+ organizations and includes medals, hydration stations, and fun surprises along the way. Get more details here.
🎈Festival Internacional del Globo: Nov 15-18, León
Soar into adventure with over 200 hot air balloons, epic light shows, and live performances by J Balvin, Marshmello, and Armin van Buuren. This vibrant festival draws visitors from around the world — don’t miss it! Get details here.
🎶 Corona Capital: Nov 15-17, Mexico City
This year’s lineup features legends like Green Day, Paul McCartney, Jack White, and New Order, alongside Shawn Mendes and Empire of the Sun. With stages packed over three days, it promises a musical journey for every taste. Check it out here.
💡 Say It in Spanish
“¿Me puede recomendar algo para…?”
Translation: Can you recommend something for…?
Use it when you’re looking for local advice, whether it’s for a headache, an allergy, or even a good place to unwind. It’s like having a magic phrase to unlock local wisdom.
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