Controversial Newsletter for Expats & Nomads

Controversial Newsletter for Expats & Nomads

Mexico’s Loophole Economy

Why broken processes beat perfect policing (for you).

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BowTied Passport
Oct 23, 2025
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USD/MXN: Mexico's 'Super Peso' Defies Gloom as US Economy Gains Steam -  Bloomberg

People in the West worship bureaucracy like it’s a moral virtue. They confuse spreadsheets with sovereignty. They assume the same institutional muscle surveillance budgets, software stacks, snappy compliance bots exists everywhere. It doesn’t. Mexico talks like a hall monitor and budgets like a broke cousin. The result isn’t a technocracy but a patchwork attempt. That patchwork leaks on time, money, documentation….but if you’re a savvy expat, those leaks might be to your benefit.

Case in point: the very agency that collects the country’s money just staged a nationwide “brazos caídos” stoppage. SAT workers announced a peaceful work action for Tuesday, October 14, 2025. Grievances led by pay that doesn’t clear inflation and buildings that are literally falling apart. If the taxman is tapping out, do not expect German grade service from anyone else this quarter.

The monetary side is also off script. Banxico cut again in late September, taking the policy rate to 7.5% in a split vote, with the Deputy Governor dissenting to hold. That’s easing into a still firm peso that’s been hovering around the high-18s per dollar, which is cute for headline inflation but ugly for exporters on thin margins. You can only run “strong currency, high real rates” for so long before the trade side falls.

And above all of this, the world’s oldest insurance policy is going up. Gold printed fresh all-time highs mid Octobber, while silver blew past it;s highs.

With help from

Saves Your Ass in Mexico: The Outbound MX Membership Program

Saves Your Ass in Mexico: The Outbound MX Membership Program

BowTied Passport
·
Feb 6
Read full story

We’ll explore why Mexico’s fiscal theater is pushing Mexico to make no-win decisions and how this could benefit you due to a weaker MXN.

How can you weaponize Mexico’s messy bureaucracy (legally) asset moves easier for you than for everyone else.

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