February 13, 2009, cont. from front page, How to … pay your property taxes, By Jesús Ibarra, Annual library membership, By Juan Manuel Fajardo Orozco, Library Director, Let the VIP Club of San Miguel pay for your library card, Annual Meeting, Election announcement

According to the newspaper La Jornada, “the devaluation is not only in terms of exchange compared to the US dollar; Mexican industries have had to pay an average of 32 percent more for imported products, causing the current recession in the Mexican economy.”

Bank of Mexico sells reserves of dollars

To bolster the economy and forestall greater losses, the Bank of Mexico sold US$400 million of its currency reserves at 14.49 pesos per dollar. According to La Jornada, the Bank of Mexico had already sold US$19,662 million in late 2008 and early 2009.

Grupo Financiero Invex informed the newspaper that the recession, weakness of foreign investments, strengthening of the US dollar and falling interest rates all play a part in the peso’s devaluation.

According to information from Hacienda secretary Agustín Cartens, it is likely that the Bank of Mexico will continue selling dollars to save the peso from another devaluation.

An imported crisis

According to Ricardo González, director of Intercam, “this fluctuation of the peso is caused by the international market situation and is not the same as past devaluations, such as the one that occurred in 1994. In that case, Mexico did not have money and we had to ask for a loan from the Unites States.” As he sees it, the current devaluation of the Mexican peso is a result of the financial crisis in the US, which has become a worldwide economic problem. “Because there is a very close relationship between the Mexican market and the United States, the problem directly affected our economy, specifically regarding the exchange rate of the Mexican peso. Public finances in Mexico are not badly managed, except in the oil industry, but fortunately oil could be sold at 70 dollars a barrel,” said González, who added that so long as the international markets continue to be unstable the exchange rate of the Mexican peso will also be unstable.

González thinks that the exchange rate could fall to 17 pesos per dollar. However, the director of Intercam thinks that the peso will recover. “Maybe the recovery will take a year or more, but when it happens, it will be fast. I think the exchange rate will stabilize between 12 and 13 pesos per dollar,” he said.

No further price increases

González believes that the price of domestic goods in Mexico will not increase further, after having increased last year. “From my point of view, there will be no increase for basic products. Only the cost of imported products will raise, due to the fluctuation in the exchange rate.”

Good time to invest in stocks

During this period of international economic crisis, González advised that investors diversify their portfolios. “I would recommend investing part in the stock market, part in fixed-rate, insured treasury bills and part in real estate. The more diversified, the more protected investments will be.”

The director of Intercam said it is not a good time to buy dollars but it is a good time to invest in the stock market. “Many shares are selling at the same price as 10 years ago. It is really a good opportunity,” he said. He mentioned that three years ago a share of Wal-Mart stock cost US$49.75 but currently costs $US28.85. “A company like Wal-Mart would never go to bankrupt, even though its stocks currently are very low.

Although the companies are suffering now, they will recover. Investments in the stock market will yield very generous returns in two or three years,” said González.

Year	Pesos per dollar before devaluation	Pesos per dollar after devaluation	Devaluation percentage	President of Mexico

1948–49	4.85	8.65	78 percent	Miguel Alemán

1954	8.65	12.50	45 percent	Adolfo Ruiz Cortínez

1976	12.50	20.60	65 percent	Luis Echeverría

1976–82	20.60	70.00	240 percent	José López Portillo

1982–88	70.00	2,285.00	3,164 percent	Miguel de la Madrid

1988–94	2,285.00	3,450.00 (3.45 new pesos)	51 percent	Carlos Salinas

1994–00	3.45	9.45	174 percent	Ernesto Zedillo

2000–06	9.45	11.00	16.4 percent	Vicente Fox

2006–12	11.00	14.58 (Feb. 3, 2009)	32.5 percent	Felipe Calderón

Eduardo Soria, San Miguel’s municipal treasurer, said that property taxes (impuestos predial) are the most important source of municipal income. “In January alone we collected 27 million pesos, more than we collected in all of 2006,” said Soria.

He added that those who pay their property taxes in February will receive a 10 percent discount, but those who wait until March or April will have to pay a fine.

Where and how to pay

You can pay your property taxes at any of the following locations:

Municipal administration building, located at Boulevard de la Conspiración130, Salida a Querétaro; two windows, on the lower and upper levels, are open from 8:30am to 4pm.

Former presidencia building at Plaza Principal 8, open 8:30am to 4pm

Banks: Banorte (San Francisco 17, Centro or La Luciérnaga), Banamex (corner Canal and Jardín, or across from Mega); Banco del Bajío (next to Pollo Feliz on Salida a Celaya). No commission will be charged if you pay cash.

When paying your taxes you must supply your last property tax bill or at least your property tax account number (cuenta predial), which is located in the upper left corner of your bill.

Taxes can also be paid online at www.sanmiguelallende.gob.mx. Locate and click on the icon “Paga tu predial en línea” (pay your property tax online) and enter your account number.

If your property is within city limits (predio urbano), you must precede your account number with “02” and follow it with “U,” for a total of 13 digits. For example, if your account number is M-001786-001, you would type in 02M001786001U.

If your property is rural, you must type “02” before the number and “R” after it. For example, if your account is M-001786-001, you would type in 02M001786001R.

After entering your account number, click on the “Aceptar” (Accept) button and the amount of your tax will be displayed. You can then enter your credit card information and print a receipt. When paying with your credit card you will be charged a commission of 1.95 pesos plus IVA.

Annual library membership
By Juan Manuel Fajardo Orozco, Library Director

Beginning March 2, 2009, the cost for the annual membership card of the Biblioteca Pública will be:
Students and children: 25 pesos
Residents: 80 pesos
Visitors: 100 pesos + 100 pesos refundable deposit*

*Deposit is returned when all library materials are returned.

We love our overdue books, Amnesty until Feb 14

Take advantage of this Valentines offer and return your overdue books to the Biblioteca Pública de San Miguel. We LOVE our book collection, and would like those stray tomes to return to the fold!

Deposit your books, anonymously of course, in the Amnesty Box in the patio February 13–14.

Let the VIP Club of San Miguel pay for your library card

Sign up or renew your one-year membership to the VIP Club for $400 pesos and let the VIP Club pay for your library card. The VIP Club has over 50 restaurants and many other establishments participating that give discounts to its members. Offer good until February 28. You'll be saving money and helping your local library.

Annual Meeting

The Biblioteca Pública de San Miguel de Allende, A.C. in accordance with its bylaws will hold its annual meeting on Friday, February 20, at 11am in the library’s Sala Quetzal, Insurgentes 25. The meeting is open to library members and the general public.

The agenda of the Annual Meeting is

1. Verification of Quorum

2. Annual Report from the President of the Board of Directors

2. Annual Report of the Treasurer

Election announcement

Elections for various positions on the Board of Directors of the Biblioteca Pública de San Miguel will be held Friday, March 6, 2009. Voting will be held at the 11am until 4pm Sala Quetzal, Biblioteca Pública, Insurgentes 25.