U.S. Retailers Cash In as Mexican Shoppers Hop Border

“The borders holiday shopping season is shaping up as one of the best on record as Mexicos economy grows at 4.7 percent, the highest rate in six years. The pesos 6.2 percent gain against the dollar in the past six months adds to the savings for Mexicans on clothes, shoes and electronics.

The peso has been stable for eight years, breaking a three- decade string of currency devaluations and high inflation, said Keith Phillips, a senior economist with the Federal Reserve Bank of Dallas. Retailers have recorded steady gains since the last devaluation in December 1994 caused sales to plummet and shops to close along the 2,000-mile 3,200-kilometer frontier.”

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