U.S. Business News: American Businesses Hurt During Holiday Season Because Mexican Shoppers Faced Border Issues, Higher Exchange Rates
The high exchange rate of the U.S. dollar to the Mexican peso and long security lines crossing the Mexican border have caused stores in border towns of Nogales and Douglas, Arizona to suffer this holiday season, Fox News Latino reported.
Usually, Mexican nationals buy popular toys and electronics for a cheaper price in the U.S. during the holiday season. But this year, fewer people made the trip, hurting the U.S. businesses that rely on Mexican shoppers.
The high exchange rate is now up to 14.70 pesos per dollar, making items more expensive than usual.
"It's difficult because it comes out the same as buying in Mexico because the dollar is so expensive," said Martha Isabel, a national who has made the trip across the border.
Lines are so long because every single person is screened before they are allowed to cross the border. Then, there is a big crowd because there are thousands of people who cross the Nogales border every day for reasons other than shopping.
"This is a bit of a new situation and something that we haven't seen in quite some time," said Luis Ramirez, a border liaison for the Arizona-Mexico Commission, which advocates for cross-border trading.
Still, the number of shoppers is less than what they have been in previous years. A store owner on Morley Avenue, Alfredo Enriquez, usually hires eight additional people for the holiday but this year he only was able to keep two people on staff.
"This is something very critical. At the end of this month I'm going to have to close," Enriquez said.
Shoppers still refuse to cross the border to avoid the longer lines.
Spokesman for U.S. Customs and Border Protection Victor Brabble said when wait times get to the point where they're considered excessive, CBP opens more vehicle lanes or pedestrian crossings to help increase the flow of traffic.
Recently, the government completed an expansion at the Mariposa Port of Entry in Nogales that cost $244 million.
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