Monday, June 23, 2025

Biggest IPO in 5 years anticipated on Mexican stock exchange

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Real estate investment trust Fibra Next is set to become the largest IPO on the Mexican stock market since 2018. (Sordo Madaleno)

The Mexican Stock Exchange (BMV) could soon see its biggest initial public offering (IPO) since 2018.

Mexican real estate investment trust Fibra Nearshoring Experts and Technology, or Fibra Next, plans to launch its IPO this year, according to Oct. 19 filings with the BMV.

Fibra owns much of Mexico’s commercial real estate. (Fibra Uno)

Bloomberg reported Tuesday that Fibra Next –  made up of assets of parent trust Fibra Uno, Latin America’s largest real estate investment trust – “is planning to raise as much as [US] $1.5 billion in what would be Mexico’s biggest initial public offering since 2018.”

That information, the news agency said, came from people familiar with the deal.

Bloomberg said that Fibra Next’s primary offering in Mexico will be backed by industrial and warehouse properties. The creation of the trust was approved by investors last month to take advantage of the nearshoring trend, according to Reuters, which also cited a draft notice saying that Fibra Next would comprise 196 properties.

According to the Bloomberg sources, Fibra next has hired banks and recently held meetings with investors. But the unidentified people said that a firm date for the IPO hasn’t been set.

Prologis warehouse
Increased demand for commercial space as a result of nearshoring has seen the value of Fibra skyrocket in recent months. (Prologis/Twitter)

Reuters reported that BBVA, Merrill Lynch, BTG Pactual, J.P. Morgan and Citigroup’s Mexico arm are managing Fibra Next’s offering.

The new trust is headed up by Raúl Gallegos, an executive with Credit Suisse and president of the Mexican Association of Private Capital, or Amexcap.

Bloomberg reported that the Fibra Next IPO will follow “a handful of offerings that have injected some life into Mexico’s stock market” after an extended period in which no new companies listed on the BMV and some firms exited. Aeroméxico formally exited the BMV last December.

By placing some of its properties in a new real estate investment trust, Fibra Uno is seeking to take advantage of growing demand for factories, warehouses and industrial parks in Mexico, according to Bloomberg.

Numerous foreign companies have recently announced plans to relocate to Mexico or expand their existing operations here.

As it seeks to capitalize on the nearshoring opportunity, the federal government last month announced tax incentives aimed at boosting investment in Mexico.

With reports from Bloomberg, Reuters and El Economista 

‘Rare’ Frida Kahlo piece could fetch US $12M at auction

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"Portrait of Cristina, my sister" shows the artist beginning to find her own signature style. (fridakahlo.org)

A portrait painted by Frida Kahlo when she was 21 years old could fetch US $12 million – or even more – when it goes up for auction later this month at Christie’s auction house in New York City.

“Portrait of Cristina, My Sister” is a simple composition, but it represents an early stage in the iconic Mexican artist’s career when she was eschewing the styles of the masters and embracing techniques and colors that would become her trademarks.

The portrait was completed during Kahlo’s convalescence after a serious bus accident. (Pinterest)

Moreover, it was painted in 1928, not long after the severe accident that left her disabled — a long metal rod tore through her midsection when she was riding in a bus that slammed into a trolley car — and left her confined to bed in a full-body plaster cast, changing the trajectory of her life. 

“In 1928, Frida was still recovering from her accident, she was just beginning to make that transition from convalescence at home to finally going out into the outside world again, and Cristina was a very important figure for her during those three years while she was recovering,” said  Marysol Nieves, Christie’s Latin American Art specialist.

The painting’s appearance at auction is a rare event. Not only is Kahlo’s body of work limited because she painted very little, but in 1984, all of her works were declared by Mexico to be national artistic monuments — preventing any works in the country from being taken abroad.

“Portrait of Cristina, My Sister” comes from the estate of music mogul Jerry Moss, the co-founder of A&M Records who died in August at age 88. Other  paintings from his collection that will be up for auction include works by Andy Warhol, Pablo Picasso and Tamara de Lempicka.

Cristina (left) and Frida (right) lived together for much of their lives. (Cristina Kahlo Alcala)

The auction will be held Nov. 9-10 at Christie’s in Rockefeller Center, and is expected to generate US $50 million.

Bidding for “Portrait of Cristina, My Sister” is expected to start at US $8 million and go up to US $12 million, but “it seems to us that the estimate is conservative given the importance of this work within Kahlo’s career as an artist,” Nieves said.

Over the past few years, Kahlo’s works have skyrocketed in value. In 2021, her 1949 painting “Diego y yo” (Diego and I) sold for US $34.9 million — a record for a Kahlo painting. (It had previously sold for US $1.4 million in 1990, at that time a record for a Latin American artwork.)

The work is expected to take over second place on the list of what Kahlo paintings have sold for, overtaking “Dos desnudos en un bosque” (Two Nudes in the Forest), which sold for US $8 million in 2016.

With reports from Reforma and Variety

This ancient Maya ball game is played in Mérida every Saturday

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The Mesoamerican ball game, which dates back over 3,500 years, was an important ritual among pre-hispanic civilizations, including the Mayas.

The Mesoamerican ball game, which dates back over 3,500 years, was an important ritual among pre-Columbian civilizations, including the Maya. The ball courts they used for this sport exist to date in archaeological sites in Mexico and elsewhere. Despite the age of the game, some variations have survived over the millennia and are still played today – visitors to Mérida can watch the Maya ball game every Saturday evening in the city’s historic center. 

The ball game played a vital role in ancient Maya society

The Maya called the ball game “Pok-Ta-Pok,” supposedly due to the sounds of the ball hitting the court’s walls. According to the National Institute of Anthropology and History (INAH), the ball court represented the universe, with the play areas’ borders reflecting the stars’ rising and setting. While the ball game is usually played with the hips, it was also played in other ways, such as using shoulders.  

The pattern of play is believed to have resembled the movements of celestial bodies and the confrontation between opposing phenomena, such as cycles of day and night. As sun was thought to face off the opposing forces in the underworld (Xibalba) to rise every morning, so too did the players on the court. The ritual game was also linked to the seasonal rebirth of plants. 

The ball is traditionally made of rubber and had weighed about three kilograms in ancient times. Players are said to have worn certain protective gear. The game in Mérida is played on the street in front of the famous Mérida cathedral, with the ball ring in the center of the play area and the two teams on each side. In pre-Columbian times, the rings were on the side walls of the ball court. INAH says up to seven players participated in each team, which supposedly had complicated scoring methods.  

You can witness ceremonial activities before the ball game in Mérida begins, including a purification ritual by a Maya priest. The players wear colorful attire with headdresses and use their hips to strike the ball. This means they must sometimes get down to floor level to hit the ball. You might even see a goal or a few. We saw a few goals in a recent Mérida game, which was a wonderful experience amid the vibrant atmosphere. The players continue the game after a goal, unlike in ancient times when a goal was supposed to have meant immediate victory. There is an ongoing commentary about the ball game and related history throughout the performance, although this is in Spanish. In the final part of the Mérida ball game, the participants use a fireball and play it with their bare hands. The players showcase impressive skills in handling a ball in flames. 

In prehispanic times, the rings were on the side walls of the ball court. INAH says up to seven players participated in each team, which supposedly had complicated scoring methods. (Canva)

So, what would happen if you lost the Maya ball game in ancient times? According to some theories, the losers were sacrificed. However, it is unclear if human sacrifices were part of the ball game ritual, although they may have happened in certain instances, such as when war prisoners were involved.

Plan your visit to see the Maya ball game in Mérida

The ball game usually takes place on Saturdays at 8.00 pm in front of the Mérida cathedral. It is a free event. The seats fill up fast, so try to get there about an hour before if possible. You can also take pictures with the players after the game and get a cleansing ritual from a Maya priest. 

Watching this depiction of the ancient ball game will give you a glimpse into the fascinating history and culture of the Maya and what this ritual must have been like in ancient times. To learn more about the Maya culture and history, visit a few of the many archaeological sites in Yucatán. You can see a magnificent ball court, considered ceremonial in purpose, at the famous Maya city of Chichén Itzá, about an hour and a half’s drive from Mérida. The site has 13 ball courts. Archaeologists also found a ball game scoreboard made of stone in Chichén Itzá. The Maya city of Uxmal and its ball court are also beautiful. 

Thilini Wijesinhe, a financial professional turned writer and entrepreneur, moved to Mexico in 2019 from Australia. She writes from Mérida, Yucatán. Her website can be found at https://thilini.me/

President López Obrador outlines reconstruction plan for Acapulco

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A week on from the devastation of Hurricane Otis, the government has outlined its plans for reconstruction and recovery works in the affected areas. (Rogelio Morales/Cuartoscuro)

A week after Hurricane Otis slammed into the Pacific coast in Guerrero as a Category 5 storm, the federal government has announced a 61.3-billion-peso recovery plan (US $3.4  billion) for Acapulco and the neighboring municipality of Coyuca de Benítez.

President López Obrador presented the “General Plan for Reconstruction and Support for the Affected Population in Acapulco and Coyuca de Benítez” at his Wednesday morning press conference, and assured residents that they are “not alone.”

President López Obrador unveiled the plan at the Wednesday morning press conference. (lopezobrador.org.mx)

“You have the support of the people of Mexico, who are always very fraternal, very supportive, and of course the support of the government,” he said.

A 20-point recovery plan 

The government’s plan includes monetary support and tax relief for Hurricane Otis victims, interest-free loans for businesses and funds for public works. Let’s take a closer look at it.

  • All households will receive 8,000 pesos (US $445) to purchase paint and cleaning products. Owners of houses that were damaged by the hurricane will receive an additional 35,000-60,0000 pesos (US $1,950-$3,340) depending on the severity of the damage.
  • Affected families will receive a package of household goods including a bed, a stove, a fridge, a fan and a dinner set.
  • Acapulco and Coyuca de Benítez residents will not be required to pay taxes including income tax until February 2024. In addition, electricity will be free for the next three months.
  • Families will receive a “basic basket” of 24 essential food products every week for the next three months.
  • Interest-free loans will be offered to small and medium-sized business via two schemes. One of the schemes will provide 20,000 loans of 25,000 pesos each to be repaid over a period of three years.
  • Loans will be offered to hotels, with the government to cover half of the interest payments.
  • The government will allocate 10 billion pesos (US $557.7 million) from this year’s budget to carry out water, drainage, public lighting, hospital and school projects. Money will also be allocated to repairs at the Acapulco airport. An additional 218 million pesos will go to highway projects.
  • The government will seek to employ 10,000 additional people in its Youths Building the Future apprenticeship scheme, with the new participants to carry out cleaning, construction and painting work as well as other hurricane recovery tasks.
Destroyed buildings in Acapulco
Many of the relief measures are targeted at individual homeowners, including tax breaks, reconstruction grants and interest-free loans. (Rogelio Morales/Cuartoscuro)

The government also committed to making advance welfare payments and has suspended repayments on government-issued home loans for six months. Among the other points in the plan is one explaining that the National Guard will provide security across Acapulco and Coyuca de Benítez “to guarantee the peace and tranquility of citizens.”

The first point of the plan is to provide all necessary support to the families of people who lost their lives in the hurricane and to “intensify” the search for the missing.

The official Hurricane Otis death toll remained at 46 on Wednesday morning, with 58 additional people unaccounted for.

Who will manage the recovery and reconstruction efforts?

Luisa Alcalde
Interior Minister Luisa María Alcalde will oversee recovery efforts, in tandem with Guerrero state governor Evelyn Salgado. (Gob MX)

Federal Interior Minister Luisa María Alcalde and Guerrero Governor Evelyn Salgado will jointly lead the efforts.

“Hurricane Otis was a phenomenon of extraordinary conditions that caused enormous devastation in our state,” Salgado said Wednesday morning.

How long will the reconstruction of Acapulco take?

The Mexican Chamber of the Construction Industry estimates that it will take at least five years to fully rebuild the city, while local business people have spoken about a period of up to two years.

Asked about the latter estimate on Wednesday, López Obrador said he believed that the reconstruction of the resort city could be finished sooner.

Experts say it may take up to five years to completely rebuild Acapulco and neighboring Coyuca de Benitez. (Rogelio Morales/Cuartoscuro)

“This tragedy occurred a week ago and electricity service has already been almost completely reestablished,” he said, adding that the period of time it will take to fully rebuild Acapulco “will depend on the investment that is made to repair hotels.”

López Obrador said that work to repair houses and ensure public services are functioning properly will be completed by the end of the year.

“The changes will already be noticeable in December. In December we’ll be finishing the public works, but the rehabilitation of hotels will take more time,” he said.

“We want Christmas to be different, we don’t want it to be a bitter Christmas,” López Obrador added.

The president called the proposed recovery plan an “investment” in the country. (lopezobrador.org.mx)

A pledge from the president 

AMLO told reporters that the government doesn’t consider the monetary outlay on the recovery plan an “expense” but rather an “investment.”

“We fortunately have healthy public finances and when it comes to providing benefits to the people we have unlimited resources,” he said.

López Obrador said that the 61-billion-peso cost of the recovery plan is “an estimate” and that if more money is needed, “we’ll increase the budget.”

The total cost of damage caused by Hurricane Otis is likely around US $15 billion, according to Enki Research, a United States-based company that tracks storms and models the cost of their damage.

With reports from Reforma, Milenio, El Economista, El Universal and El Financiero 

Recovery efforts continue in Hurricane Otis aftermath

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Almost a week on from the devastation of Hurricane Otis, Acapulco is beginning the rebuilding process. (Rogelio Morales/Cuartoscuro)

Six days have now passed since Hurricane Otis made landfall as a Category 5 storm on Mexico’s Pacific coast, devastating Acapulco and other parts of the state of Guerrero.

Here’s the latest on the impact of the powerful hurricane and the recovery efforts.

Hurricane Otis
Otis intensified rapidly just before making landfall, hitting Acapulco as a Category 5 hurricane – the highest classification of storm. (Conagua)

Over 100 people dead and missing

Guerrero Governor Evelyn Salgado said Tuesday morning that the official Hurricane Otis  death toll was 46, with 58 additional people unaccounted for.

The death toll increased by one compared to the figure given at President López Obrador’s Monday morning press conference, while the number of missing people rose by 11.

Salgado said that personnel from the Mexico City Attorney General’s Office were joining more than 30 brigades of people searching for those reported as missing.

There are now more than 100 dead or missing as a result of the storm. (Carlos Alberto Carbajal/Cuartoscuro)

33 sunken boats in Acapulco bay 

Navy Minister Rafael Ojeda reported that 33 sunken vessels had been located at the bottom of Acapulco bay, an increase of four compared to an earlier report.

“We’re going to start recovering some sunken boats,” he told López Obrador’s Tuesday press conference.

“… Up until yesterday we have identified 33 boats … and we’re going to try to recover them,” Ojeda said.

Destroyed yachts in Acapulco Marina. (Rogelio Morales/Cuartoscuro)

It was unclear how many people were on board those boats when Otis was roaring toward the Pacific coast.

The Associated Press reported that Acapulco residents “said that some crews had either chosen or been ordered to stay aboard to guard their craft.”

“A local business chamber leader put the number of missing or dead at sea as high as 120, but there has been no official confirmation of that,” AP added.

Damage assessed at over 30,000 homes and businesses 

The damage to the Hotel Princess, one of Acapulco’s most recognizable landmarks. Note the vehicles strewn across the lobby. (Cuartoscuro)

Welfare Minister Ariadna Montiel Reyes said that by the end of the day on Monday, officials had visited 32,644 homes and businesses as part of a census of damage in Acapulco and other Guerrero municipalities affected by Otis.

“We’re carrying out the work house by house,” she said, adding that 2,300 officials known as “servants of the nation” are conducting the census.

The federal government said Sunday that almost 274,000 homes in Guerrero had been damaged by Otis.

Over 10,000 military and National Guard personnel remain on the ground

The army hands out drinking water to residents affected by the hurricane. (Rogelio Morales/Cuartoscuro)

National Defense Minister Luis Cresencio Sandoval told López Obrador’s press conference that 6,500 soldiers and Air Force personnel and 5,000 National Guard officers are contributing to cleanup, humanitarian and security efforts in Guerrero. Some 1,700 marines are also assisting the efforts, Ojeda said.

Sandoval said the security forces are distributing provisions, cooking and serving food at community kitchens, offering medical assistance and providing security at food warehouses and gas stations, among other tasks.

Power coming back on 

Federal Electricity Commission (CFE) official Guillermo Nevárez said Tuesday morning that the reestablishment of electricity services across Guerrero was 75% complete.

“In the area of Acapulco we’re above 50%,” he added.

Much of the Guerrero coast was without power as a result of the damage. Engineering teams have worked tirelessly to restore power to the region. (Dassaev Téllez/Cuartoscuro)

Nevárez said that the navy would assist the CFE with its power restoration efforts on Tuesday, and predicted that 85% of disconnected services would be back online by midday.

Another CFE official said in an interview later in the day that the state-owned electricity company was aiming to have the entire city of Acapulco connected on Tuesday.

Governor: supermarkets to reopen within 2 weeks

Governor Salgado said that Walmart, Soriana and Sam’s Club would reopen some of their Acapulco stores in the next 10-15 days.

Her announcement came after government officials met with representatives of those chains.

Residents of Acapulco currently have little-to-no access to food, with many resorting to looting supermarkets. (Rogelio Morales/Cuartoscuro)

Salgado said that state police and National Guard officers would “guarantee security” at the reopened stores.

Widespread looting occurred in Acapulco in the first days after Otis hit with residents getting away with essential items such as food, toilet paper and diapers, but also things such as widescreen televisions and refrigerators.

Government to announce reconstruction plan on Wednesday 

At his Tuesday morning press conference, López Obrador described the plan as the “second stage” of the government’s disaster response and pledged once again to get Acapulco “back on its feet” very soon.

The work to repair the city has begun, though it will take up to 5 years to fully restore the city. (Rogelio Morales/Cuartoscuro)

The Mexican Chamber of the Construction Industry estimates that it will take at least five years to fully rebuild the city.

The cost of damage caused by Hurricane Otis is likely around US $15 billion, according to Enki Research, a United States-based company that tracks storms and models the cost of their damage.

AMLO proposes using judiciary trust money to help hurricane victims

Speaking six days after the Senate voted to eliminate 13 public trusts that help fund the federal judiciary, López Obrador proposed using the approximately 15 billion pesos (about US $830 million) held in the trusts to “support” the victims of Otis.

“It’s a proposal, it’s not my decision, they’re going to decide in the Congress,” he said.

Tax incentive for hurricane victims 

In a decree published Monday, López Obrador announced a tax incentive for taxpayers “who have their tax address, agency, branch or any other establishment in areas affected” by Hurricane Otis, as determined by the federal government.

Eligible business owners and other taxpayers will be allowed to immediately deduct from their tax obligations money used to purchase “new or used fixed assets” between October and December 2023, according to the decree.

A 100% deduction rate will apply “as long as said assets are exclusively and permanently used in the mentioned areas and are intended for replacement, reconstruction or rehabilitation,” the decree said.

With reports from El Universal, Milenio, AP and Reforma 

Cold, rainy days ahead for 8 Mexican states

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Eight Mexican states, including Mexico City should brace for cold weather this week, warn forecasters. (Margarito Pérez Retana/Cuartoscuro)

Heavy rains and cold winds are predicted in eight Mexican states over the next few days as the result of a blast of arctic air combined with Tropical Storm Pilar, the National Meteorological Service (SMN) reports.

With the state of Guerrero still reeling from Hurricane Otis, Pilar formed on Sunday in the Pacific Ocean off the coast of Central America, becoming the 16th named cyclone of the season.

Pieces of debris litter a street lined with damaged palm trees and hotels.
Acapulco has been decimated by Hurricane Otis, which struck last week. (Dassaev Téllez Adame/Cuartoscuro.com)

Located off the west coast of El Salvador, Pilar does not represent severe danger to Mexico. However, with Otis’ sudden turn into a deadly, destructive Category 5 hurricane at landfall last week, forecasters are paying extra attention to the storm. 

On Tuesday morning, the SMN issued an alert for “torrential and extraordinary” rain along with “strong, icy winds and high waves in the states of Tamaulipas, Veracruz, Tabasco, Campeche, Yucatán, Chiapas, Oaxaca and Quintana Roo.”

Very strong rains, including thunderstorms and possible hail, are also expected in Puebla, Michoacán and Guerrero. The bad weather should last through Thursday, said Alejandra Méndez, the head of the SMN.

The cold front–tropical storm combination also will cause a drop in temperatures, fog and drizzle over Mexico’s northern and northeastern states, and gusts of up to 80 km/h (50 mph) on the Caribbean coasts of Tamaulipas and Veracruz.

While Pilar is projected to move away from Mexico, the storm will still cause low temperatures and possible flooding in parts of the country. (U.S. National Hurricane Center)

Tabasco entered a state of yellow alert on Tuesday morning, with officials asking the population to take precautions in the event of flooding. There are also concerns over reduced visibility and landslides in the area.

Meanwhile, sleet or snow is expected in the mountainous areas of Chihuahua, Coahuila and Nuevo León, as well as on some of Mexico’s tallest peaks, such as Citlaltépetl and Popocatépetl.

In México state, lows of 4 to 6 Celsius are expected, with lows of 7 to 9 Celsius in Mexico City.

This year’s Pacific storm season has seen 10 hurricanes (Adrian, Beatriz, Calvin, Dora, Fernanda, Hilary, Jova, Lidia, Norma and Otis) and six tropical storms (Eugene, Greg, Irwin, Kenneth, Max and Pilar).

Residents in Tabasco have been told to prepare for possible flooding as a result of Pilar. (Dassaev Téllez/Cuartoscuro)

Pilar’s center was about 260 km (161 miles) south of San Salvador as of 1 p.m. Tuesday, with sustained winds of 85 km/h (53 mph), according to the U.S. National Hurricane Center.

Méndez noted that its movement “is erratic,” but after a short push toward Central America, Pilar is expected to head back out to sea by Thursday, in part because it will be blocked by runoff from the arctic air mass.

With reports from La Jornada and Infobae

 

Life skills you’ll need raising a teenager in Mexico

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Thinking of moving to Mexico with a teenager? Everything you need to know before your family's big change. (Dianne Hofner Saphiere / Thru Di’s Eyes Photography)

We moved to Mexico with our U.S.-born son when he was twelve; that was fifteen years ago. We love our lives in Mazatlán, though any family has ups and downs. Fortunately, our son has developed many competencies he wouldn’t have had if we stayed in the USA.

This article is the second in a series on raising an English-speaking child to be bicultural in Mexico. The first focused on preparing for the move and the first year; this article will center on middle school or junior high. I hope this series might help those who are or will be adapting to Mexico as a family.

We moved to Mexico with our US American son when he was twelve; that was fifteen years ago. We love our lives in Mazatlán. (Dianne Hofner Saphiere / Thru Di’s Eyes Photography)

Life as a teenager

My strongest memory of those early teenage years of our son’s life was how busy we all were! There were always kids or other families in our home. There was always an event to attend, often two or three in one evening. I had been frustrated with our boring social life in Kansas City; now, we had multiple events daily! The community that quickly formed around us was welcoming and fun-loving—a complete blessing for a family with an only child. Of course, there were many times we felt left out—he’d miss a soccer practice due to a lack of communication or misunderstanding. Once, we even returned to school from the summer holidays a week late! Who announces in June when the next school year will start, then changes the start date over the summer break but doesn’t communicate that to all the families? We learned to check in with friends frequently while out of town, as things in Mexico change quickly, and communication is often organic rather than intentional.

A tradition of piscinadas (pool parties) emerged with our son. Quite frequently, a large group of his friends would come over on a Friday after school to horse around in the pool of our condo complex. A memory seared into my soul is when Danny first started doing this. The kids were all twelve, and the girls would wind their legs around the boys’ waists, and several couples would talk intimately around the pool. I was horrified! Such sexuality and public intimacy at such a young age! I didn’t realize at the time this behavior wasn’t sexual; it was a quality of friendship with which I just wasn’t familiar. A couple of years later, when the kids did start getting interested in one another as potential partners, the girls would hang out at one end of the pool and the boys at the other. So much for my horror.

During the middle teenage years, there is, of course, the quinceañera tradition in Mexico. Danny attended many of these parties. We were delighted to see him chosen as chambelán (escort to the birthday girl) at several. The kids looked so great dressed up and learned the coolest dance moves. As parents, we felt honored to be padrinos (godparents) for several kids. We hosted one quinceañera in our condo party room.

We remember the chile-eating contests as the boys quested to out-macho one another at this age. We learned about them when we noticed our son taking milk to school, saying it helped him survive the hottest chiles. The early teen years are also when Mexican school children do lots of project work in teams. We enjoyed the groups coming over to our house to work on projects as we got to know many of the kids in Danny’s class.

Early teens are when many kids get their first jobs. Danny’s first job here was at a palapa restaurant on the beach. We imagined he’d be a busboy, but they assigned him to collect the money to use the port-a-potty! Humility in action. We loved how his school required the kids to do social service hours and volunteer jobs. He helped teach English; he worked for several years at the local animal shelter, cleaning cages and walking the dogs; and he did a few other charity gigs. It has instilled in him a lifelong commitment to helping others, for which we are grateful. It is a practice in most Mexican schools and one I highly recommend to schools everywhere.

Teenagers are, by nature, embarrassed by their parents. During his early teen years, I keenly remember that Daniel asked me to stay silent and not say anything during conversations with strangers. “You sound like a gringa when you speak,” he told me. “I am a gringa! And I need to speak,” I would respond. Ah, family love.

We remember local girls hitting on our son; they seemed fascinated with a foreign boy. Once at lunch in a restaurant, a young teenage girl set a note on our table for Danny with her phone number. It seemed incredibly forward to me for a 14 year-old. That is when we decided to discuss birth control, commitment, and drinking, maybe earlier than in the U.S.

Our home is on the route of the Mazatlán Carnaval parade, the third largest in the world. So, every year we’d have a huge party, and a dozen or so of Danny’s friends would join us. They were so much fun, dancing as the comparsas (puppets) went by! 

He was also a member of the Mexican Scouts, which are coed and truly Scout-run. Danny would travel all over the country with his troop. The older kids care for the younger ones; the leaders are present to supervise and chaperone. To this day, Danny can take charge of a group of children (or adults) and quickly improvise an activity to keep them all engaged and entertained. Scouting Mexican-style gave him many lifetime gifts, friends, and skills. One of my favorite memories is Danny and a few of his Scout friends fundraising during Mazatlán’s ArtWalk. They were standing at a table outside a well-known gallery, laughing like crazy. Witnessing our son regaling the others with stories and jokes in Spanish, being the life of the party, after only a couple of years in the country, warmed my soul.

Initial adaptation and Deep Culture Shock

By the second year of our lives in Mexico, we had adapted, at least in surface ways: we’d furnished our home, we knew our way around, we could shop, and had routines. We were comfortable at social events, Danny had a job and volunteered, and we had our jobs and circle of friends. About this time Deep Culture Shock kicked in, and it was about values in conflict— questioning our identities and who we are in this new environment. 

By the second year of our lives in Mexico, we had adapted, we’d furnished our home, we knew our way around, and had a good circle of friends. (Dianne Hofner Saphiere / Thru Di’s Eyes Photography)

One of my most memorable culture shock moments came at the end of seventh grade. We wanted to host a lunada, a beach party, for the entire class. I thought it would be fun to co-host with a couple of other families, thinking that parents would feel more comfortable sending their kids to the beach if local families were co-hosting. So, I calculated how much the taquiza (taco bar), music, and drinks would cost. I chose a couple of women from school I knew to whom the US$100 or so in costs wouldn’t be an inconvenience. I called to share my idea with them. In the States, or even in Japan, where I’d lived for years, my friends would have eagerly agreed—what a fun idea! The response I received from the other mothers was, “Why should I pay for other kids to attend a party? You need to charge each child who attends. If I’m going to pay, will you invite all my friends and family members? No, absolutely not.” I was stunned, speechless. In the U.S., asking children to pay to attend a party would seem absurd. But here in Mexico, it’s an acceptable way to host a party and share the cost. Instead, I erroneously felt that two women I thought were friends weren’t. The interaction cost me a lot of soul-searching and reflection. That’s what cultural adaptation is: the chance to get to know ourselves more deeply, clarify our values, and expand our repertoire of behavior. The lunada, by the way, was a huge success! We ended up paying for it as our thank-you to everyone for helping us integrate, and no one hesitated to send their kids—despite the hurricane that day. We received phone calls all day asking if we were canceling or not. Fortunately, the weather cleared before sunset, and many kids were so eager that they arrived at the event an hour early!

Middle school or junior high

Danny’s middle school was private and Catholic. We realized sometime during the second year that it had been the perfect choice for him the first year. It was one of the only schools in Mazatlán back then that was bilingual, and he’d needed that. Its small size was helpful, as we quickly became part of the community. The teachers were all supportive. But once he became fluent in Spanish and understood the culture better, those advantages receded in importance and the things we disliked grew in their impact.

One example was the parental role in school activities. During parent-teacher meetings, the teachers in our school would always say they welcomed parent involvement. We quickly learned that, at least from our U.S. perspective, they didn’t want to hear our ideas or opinions. The teachers and staff wanted our positive comments, our assistance in class when requested, and not much else.

Our family will never forget the three Christmas plays or pastorelas in which our son performed. These are typically reenactments of the Christmas story, the birth of Jesus, though the story is often updated and placed in a modern context. Our son was the only foreign boy in his class. We were delighted in seventh grade when he told us he had a major role in the school’s Christmas play! Our son? Not yet fully fluent in Spanish? How exciting! We proudly recorded portions of the performance to share with family and friends. Danny played the ugly gringo boss. He did a good job; he’s a good public speaker with a strong sense of comedy. We were a bit sad that they cast the gringo kid as the ugly gringo; it seemed a bit obvious and played to stereotype. And we laughed that they cast the tallest, whitest, richest kid in the school as the “poor, downtrodden, dark-skinned Jesús.” We had moved to Mexico because we felt it crucial to raise our son with experience living as a minority. We needed to watch what we asked for! It was a good lesson in empathy.

After we attended the performance of a second pastorela in eighth grade and the casting of the main parts was the same, we spoke with the drama teacher. “Danny does such a good job in the role. He doesn’t mind. He has never said he doesn’t want to play an ugly gringo boss.” Our explanations of how his casting fueled stereotypes and didn’t stretch the kids’ acting skills as much as it could fell on deaf ears.

When the scenario repeated itself for the third time in ninth grade, we became the ugly gringos. Our son begged us not to go to school, not to say anything. This time Mom and Dad spoke with the principal. And this time, our explanations again made zero impact. In her mind, the drama teacher had done an excellent job, as had the students, so why were we complaining? We moved to Mexico and intentionally chose to encounter values differences and adaptation opportunities, but that didn’t make the experience less stressful or, sadly, make us model citizens.

I remember one time, during a period of enormous frustration with the irony of the school, attending a Lenten program. At Danny’s (Catholic) middle school and high school, parental attendance at weekly programs during the 40 days of Lent was encouraged — students’ grades improved one point in the class of their choice if parents attended as suggested. Every child wanted their parent to attend. I enjoyed the Lenten talks, but these came during my experience of deep culture shock. In my then-sour-mind, these well-dressed, well-made-up, highly religious ladies were the same ones who pushed, shoved, and cut the line when the need presented itself. At the entrance to the lecture hall was a huge bowl of candy. I took a couple of pieces. Many ladies scooped significant amounts of the wrapped candies into their purses. Oh, how I chuckled internally. “Yes, you are so greedy. You are rich, yet you take advantage of anything free you can get your hands on,” my failure-to-culturally-adapt-self told me. The priest then began his lecture by asking each parent attending how many pieces of candy they’d taken. The lesson was about the common good, sharing, other-centeredness, and the evilness of greed: good Christian values. I felt so vindicated! But, of course, what good did that do me? Adaptation demanded that I understand their mindset in grabbing the candies, even if I didn’t like it.

One of the greatest downsides of culture shock is when we behave poorly. It can happen to the best of us. Mexico was in the round of 16 of the World Cup, and the entire country seemed to be shutting down to watch the matches. The school sent home word that children should NOT skip school and that they would be allowed to see the match at school. We knew from most of his friend’s parents that they would keep the kids home anyway, letting them enjoy the big match with family. Many even went out to sports bars to watch it as a family. Being what we thought were responsible parents, we made Danny go to school. He’d be able to watch the match there. However, we got a furtive text from our son saying that, no, too many kids had skipped school, so the staff had decided not to show the match as punishment. Give me a break! Punish the kids who do attend school because too many others have skipped. It pushed me over the edge. I showed up at school to take Danny out for a “doctor’s appointment.” When the school procrastinated for over an hour in releasing him, I demanded his release. I accused them of keeping him hostage against my will. I told them school was not a prison, and they had no right to keep him from me. It was ugly. I am ashamed now to think about it. But I remain happy that I was able to finally get him out of school so we could watch the second half as a family.

Keys to successful adjustment

It was key for us to remain strong as a family. We continued our palapa Friday tradition, celebrating the end of each week with lunch on the beach. We continued our daily meals together and talked about the day’s experiences. As always, we should have discussed some things that we didn’t, but the daily mealtime at least provided an opportunity. Scouts was a godsend for our son’s adaptation: he met people from other socio-economic backgrounds, and we got to know their parents, too. It provided different learning and skill development opportunities than school.

We found it incredibly helpful to know his friends and their parents. We hosted Carnaval parties, Fridays at the pool, and Kings’ Day gatherings, and gratefully, our home became a gathering place for Danny and his friends. Having the kids around so much enabled us to get to know his friends and stay in tune with what they were all up to. It also cost us a lot in groceries!

Having a support network of other parents and knowing the idiosyncrasies of the various kids in our son’s tribe was so helpful in helping Dan to make sense of cultural issues. Those friendships were invaluable to our sanity as parents, too. 

We continued to learn that things often don’t happen as expected. We reminded ourselves that frustration is a normal part of learning and adaptation. Communication is miraculous when you think about it; of course we had miscommunication between people so different from us! We tried to enjoy the surprise and go with the flow while remaining committed to holding on to our core values as individuals and as a family. 

Finally, we found it extremely helpful to have hobbies or activities that fed our self-esteem and reminded us we were capable, intelligent, friendly people. Sometimes, sitting down and reading a good English-language novel was just what the doctor ordered!

As far as Danny was concerned, these middle school years in Mazatlán taught him that hard work is good, and that time laughing and bonding with friends and family is great. He learned to care for himself and others, proving to be an outstanding friend. He learned responsibility and the value of improvisation and flexibility, and he polished his creativity. We couldn’t have asked for a better set of friends or learning experiences for a young teenager.

This is the second article in a multi-part series on raising our son in Mexico. I trust you will join me for the remainder of the story!

Dianne Hofner Saphiere is a photographer and interculturalist who has lived in Mazatlán since 2008. Her photographs can be found under “Thru Di’s Eyes” on FB, IG or her website, www.thrudiseyes.com. She also runs the expat website www.vidamaz.com.

Peso flirts with dropping below 18 to the US dollar

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Mexican peso bills
The peso appreciated for three consecutive trading days, dipping below 18 to the US dollar on Tuesday morning. (CRISANTA ESPINOSA AGUILAR /CUARTOSCURO.COM)

The Mexican peso was back below 18 to the US dollar for a brief period on Tuesday morning, almost four weeks after dipping to a six-month low against the greenback.

The USD:MXN exchange rate dropped to as low as 17.93 before the greenback regained ground, according to Bloomberg data. That rate is an improvement of 44 centavos, or about 2.5%, for the peso compared to the six-month low of 18.37 to the dollar it reached on Oct. 5.

Pesos with US dollars
The peso strengthened for three consecutive trading days, due to investors’ reduced aversion to risk. (Depositphotos)

However, at 12 p.m. Mexico City time, the peso had weakened to 18.03 to the dollar.

The peso strengthened on three consecutive trading days between last Thursday and Monday after closing at almost 18.33 to the dollar last Wednesday. The currency closed at 18.15 to the dollar last Thursday, 18.11 on Friday and 18.05 on Monday.

The newspaper El Economista reported that the peso appreciated due to reduced aversion to risk as nervousness about the conflict in the Middle East wanes.

The peso’s strengthening early Tuesday came after the publication of data that showed stronger-than-expected economic growth in Mexico in the third quarter of the year.

Banco Base analyst Gabriela Siller noted that the exchange rate “is not managing to consolidate below 18 pesos per dollar due to risks at the global level and in Mexico.” (Gabriela Siller)

But later in the day, the peso was trading at or near its closing position on Monday.

Gabriela Siller, director of economic analysis at Banco Base, said on the X social media site that the USD:MXN exchange rate “is not managing to consolidate below 18 pesos per dollar due to risks at the global level and in Mexico.”

When the greenback is below 18 pesos, “advance purchases of dollars and foreign exchange hedges are being made, which makes the exchange rate go up [above 18] again,” she added.

Janneth Quiroz, director of economic analysis at the financial group Monex, noted on X just before 9 a.m. that the gains made by the peso earlier in the day had been erased.

Weak manufacturing results in China were partially to blame for the weakening of the peso on Tuesday, said Janneth Quiroz of financial group Monex. (Presidencia/Cuartoscuro)

She said that the peso on Tuesday was “affected by an increase in aversion to risk” after the publication of weak manufacturing data out of China.

Another factor that will likely affect the USD:MXN exchange rate this week is the United States Federal Reserve’s monetary policy decision. The Fed will announce its decision Wednesday afternoon.

Its officials “are widely expected to leave interest rates steady … but investors and economists will watch for any hint about whether rates are likely to stay that way,” The New York Times reported.

At 11.25%, the Bank of Mexico’s benchmark interest rate is well above that the Fed’s 5.25-5.5% target range. Analysts cite the broad gap between the two rates as one factor that has helped the peso appreciate this year after it started the year at about 19.5 to the greenback.

With reports from El Economista 

WTA Finals 2023 brings best of women’s tennis to Cancún

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Aryna Sabalenka
Aryna Sabalenka comfortably overcame Maria Sakkari in straight sets in the tournament. (WTA)

Eight of the best women’s tennis players in the world — including 19-year-old U.S. Open champion Coco Gauff of the United States — have gathered in Cancún this week to compete in the Women’s Tennis Association’s year-end tournament.

The WTA Finals, an eight-day event that runs through Sunday, Nov. 5, is offering an enormous US $9 million prize pool, 80% more than last year’s US $5 million – with an undefeated streak by a player being worth up to US $3 million.

The tournament brings together all of the top rated players in womans’ tennis. (WTA/Instagram)

The format for singles players is round-robin with two groups of four. Each player will have three matches, with the top two from each group advancing to the Saturday semifinals. The singles final is set for Sunday.

All of the action, including doubles, will take place in a 4,300-seat temporary, outdoor stadium on the grounds of the Paradisus Cancún hotel. This year marks the 52nd edition of the singles event and the 47th for doubles.

It is the second time in four years the tournament has been held in Mexico, following Guadalajara in 2021 and Fort Worth, Texas, last year.

This year, there will be a new winner, since none of the eight qualified players has won this tournament before. 

Maria Sakkari of Greece won the top prize on her last visit to Mexico at the Akron Guadalajara Open. (WTA)

Last year’s champion was No. 6 seed Caroline Garcia, who went 2-1 in her round-robin matches and beat No. 7 seed Aryna Sabalenka 7-6 (7-4), 6-4 in the final.  But this year the 30-year-old Frenchwoman is ranked No. 20, and has failed to qualify for the finals.

The field includes Australian Open champion Sabalenka, 25, of Belarus, currently ranked No. 1 in the world.

The others are No. 2 Iga Świątek, 22, of Poland (French Open champ), No. 3 Gauff (U.S. Open champ), No. 4 Elena Rybakina, 24, of Kazakhstan, No. 5 Jessica Pegula, 29, of the United States, No. 6  Markéta Vondroušová, 24, of the Czech Republic (Wimbledon champ), No. 7 Ons Jabeur, 29, of Tunisia and No. 9 Maria Sakkari, 28, of Greece.

Czech star Karolina Muchova, 27, currently No. 8 in the world, was the eighth qualifier, but she withdrew because of a wrist injury, allowing room for Sakkari. In September, Sakkari won the Akron Guadalajara Open for her first WTA tournament title in four years.

In the round-robin singles matches so far, Sabalenka defeated Sakkari 6-0, 6-1; Swiatek defeated Vondrousova 7-6 (7-3), 6-0; Gauff defeated Jabeur 6-0, 6-1; and Pegula defeated Rybakina 7-5, 6-2.

With reports from La Jornada and BBC

Mexico’s economic growth exceeds expectations in Q3

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Strong performance by Mexico's agricultural sector helped ensure good growth in Q3, according to official statistics. (Juan Pablo Zamora/Cuartoscuro)

Mexico’s economy beat expectations in the third quarter, growing 0.9% compared to the previous three-month period and 3.3% in annual terms, according to preliminary data published by the national statistics agency INEGI on Tuesday.

It was the eighth consecutive quarter that GDP increased, the longest winning streak since a nine-quarter run of growth between 2013 and 2015.

Audi plant in Mexico
The secondary sector, including manufacturing and construction, grew 1.4% compared to Q2, and 4.5% annually. (Audi México)

The quarter-over-quarter growth in the July-September period was slightly above the 0.8% forecast of analysts polled by Bloomberg and Reuters, while the year-over-year performance was also 0.1 percentage points higher than expected.

INEGI also reported that growth in the first nine months of the year was 3.5% compared to the same period of 2022.

Primary sector led growth in Q3

The primary sector, including agriculture and fishing, grew 3.2% compared to the April-June quarter and 5.3% in annual terms.

Builder in cancun
The secondary sector, which includes the construction industry, saw 1.4% growth over Q2. (Elizabeth Ruiz/Cuartoscuro)

The GDP of the secondary sector, including manufacturing and construction, expanded 1.4% on a quarter-over-quarter basis and 4.5% compared to the July-September period of 2022.

The tertiary, or services sector, recorded the weakest growth, growing 0.6% compared to Q2 and 2.5% in annual terms.

The secondary sector was the best performer in the first nine months of the year, growing 4%. Tertiary sector GDP accelerated 3.3% compared to the first nine months of 2022, while primary sector growth was 3.2%.

What are analysts saying about the Mexican economy?

“The Mexican economy has been very resilient because the United States has also been very resilient and both economies are interconnected,” said Ernesto Revilla, chief ecnomist for Latin America at Citigroup.

The United States recorded economic growth of 4.9% in the third quarter, according to preliminary date from the U.S. Department of Commerce.

Revilla said that the strong third quarter results were “also due to domestic demand, because we are seeing a very strong labor market in Mexico, strong remittances and a probable behavior change on the part of the consumer.”

Fitch Ratings’ Carlos Morales said the growth shows the increased demand caused by nearshoring. (Carlos Morales/Linkedin)

Carlos Morales, director of Latin America Sovereigns at Fitch Ratings, said that the Q3 results “continue to signal the increasing demand for Mexican manufacturing production due to nearshoring effects.”

Jason Tuvey, deputy chief emerging markets economist at Capital Economics, noted that strong Q3 growth in the primary and secondary sectors more than offset lower growth in the tertiary sector.

He said that a slowdown in Mexico “is on the cards” as monetary policy takes a greater toll and weaker growth in the U.S. weighs on the Mexican export sector.

The Bank of Mexico’s key interest rate is currently set at a record high of 11.25%.

The government’s view

The Ministry of Finance and Public Credit (SHCP) said in a statement on Monday that the Mexican economy continued on a “path of sustained growth” in the third quarter of the year “thanks to the strength of employment, the increase in real salaries and the constant increase in internal demand.”

A container ship at Lazaro Cardenas port in Michoacan
The Mexican government has said that the economy could grow 3.5% this year. (APM Terminals)

Among other points, the SHCP noted that gross fixed capital formation – investment in construction projects and machinery and equipment – reached a record high in July, and that foreign direct investment hit an all-time high of over US $29 billion in the first half of the year.

Deputy Finance Minister Gabriel Yorio said last week that the Mexican economy could grow 3.5% in annual terms in 2023. Such growth would not only be “encouraging” but also above the projections of analysts, he said during an appearance in the Senate.

Earlier this month, the International Monetary Fund raised its 2023 growth forecast for Mexico to 3.2%.

What’s in store in Q4 and beyond?

The newspaper El Financiero reported that the level of consumer spending will be a “determining factor” in the performance of the Mexican economy in the final quarter of the year.

The “Buen Fin” shopping event – the Mexican equivalent of Black Friday – and Christmas shopping in December typically lead to an increase in consumer spending in the final months of the year. The “Buen Fin” event will run for a four-day period starting Nov. 17 and concluding Nov. 20.

Mexico’s Buen Fin sales event is still to come in the next quarter. (Crisanta Espinosa Aguilar/Cuartoscuro)

Public investment in large infrastructure projects has helped spur economic growth, and spending will only increase in 2024.

But Gabriela Siller, director of economic analysis at Mexican bank Banco Base, recently warned that the value of construction sector production could “plummet” in 2025 due to a lack of government resources for large infrastructure projects.

That eventuality could weigh on growth, although it could be offset by an increase in private investment, including from foreign companies seeking to nearshore to Mexico.

With reports from El Financiero, El Economista and Reuters