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Social and Behavioral Sciences Commons

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Economics

Border Region Modeling Project

Series

2011

Reverse Dollarization

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Full-Text Articles in Social and Behavioral Sciences

Retail Peso Exchange Rate Discounts And Premia In El Paso, Raúl Muñoz, Michael J. Pisani, Thomas M. Fullerton Jr. Sep 2011

Retail Peso Exchange Rate Discounts And Premia In El Paso, Raúl Muñoz, Michael J. Pisani, Thomas M. Fullerton Jr.

Border Region Modeling Project

This paper studies the exchange rates at which Mexican pesos are accepted for retail purchases in El Paso, Texas. A stratified random sample of 586 participating firms is surveyed to examine two aspects of reverse dollarization in the El Paso/Ciudad Juárez border region. The first is to determine the percentage of retail businesses in El Paso that accept foreign currency in the form of Mexican pesos. The results suggest that just over 13.1% (77/586) of all retail firms in this market accept pesos, which on average, comprise 4.35% of total sales for those firms. The second is to calculate the …