### Increase in Dollar Value Strains Tijuana Construction Companies
The recent fluctuations in the dollar exchange rate have significantly impacted construction companies in Tijuana, according to Cristina Hermosillo Ramos, President of Tijuana’s Economic Development (Deitac). The instability began post the June 2nd elections, following the announcement of Claudia Sheinbaum’s presidential victory.
Hermosillo Ramos elaborated on how dollar volatility has made it challenging to manage material costs and contract negotiations effectively. She emphasized, “Most of our transactions are conducted in dollars, particularly in the construction sector where I operate. We are witnessing significant price fluctuations in materials, complicating cost control.”
While some sectors might benefit from the exchange rate changes, Tijuana can no longer be seen as a low-cost labor city. Instead, it is viewed as an investment hub with greater economic impact. Hermosillo Ramos highlighted that Tijuana is not seeking companies to save on wages but to foster a more experienced and integrated ecosystem.
Economist Jorge Fonseca predicted that these fluctuations might persist until the current federal administration concludes. He cited a post-election market reaction as a significant factor causing pressure on the exchange rate. “The markets were somewhat unsettled following the June 2nd election results, leading to exchange rate pressures due to uncertainties about the incoming administration’s economic policies,” Fonseca explained.
Fonseca also noted that consumer concerns predominantly revolve around inflation, which has been above the Bank of Mexico’s 3% target for the past three years. “Although the inflation rate isn’t rising at an alarming pace, it has remained above the set goal, contributing to a decrease in consumer purchasing power,” he stated.
### Secondary Article: Dollar Fluctuation’s Broader Impact on Tijuana’s Economy
Tijuana’s broader economy is feeling the strains of dollar value fluctuations, impacting not just construction firms but also the cost of living for local residents.
**Real Estate Prices and Rentals:**
Despite the instability, there is no mandatory policy for rent payments to be made in dollars, providing some relief to residents. However, the increased costs of construction materials can trickle down, potentially raising renting costs.
**Basic Goods and Family Budgets:**
Variations in the dollar exchange rate also affect the prices of basic goods. The recent hikes in the cost of the family basket have made living more expensive, adding to the financial strain on Tijuana families.
**Unemployment and Job Market Dynamics:**
While some sectors might face job cuts due to rising costs, the move toward a more integrated and experienced workforce may result in better-paying, though fewer, job opportunities. This shift indicates a significant evolution in Tijuana’s economy.
As Tijuana adapts to these economic changes, monitoring dollar fluctuations will be critical for both businesses and consumers alike.
For more updates, follow TJGringo.com.