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¡Hola amigos! Tensions are high, and Monday made that crystal clear. President Sheinbaum got Trump on the phone, rejected any talk of U.S. troops, and told the country: “Your president will never negotiate the country’s sovereignty or territorial integrity. Never.”

We’re also tracking rising inflation forecasts, why the peso may be in for a volatile year, and the risks of being uninsured. Oh, and Baby Jesus is on the move again in Xochimilco.

We’ve got a lot to cover — let’s get to it.

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❓México Trivia

What lies beneath the jungle near Tulum that scientists say shouldn’t even be able to exist at this scale?

Answer at the bottom of the newsletter.

📣 México News Roundup

📞 President Sheinbaum said she initiated a brief call with President Trump on Monday, rejected any proposal involving U.S. troops on Mexican soil, and agreed to keep security cooperation focused on coordination, not intervention.

🛢️U.S. Energy Secretary Chris Wright confirmed it will not block Mexico from continuing to send oil to Cuba, despite President Trump’s warnings to cut off the flow of crude to the island. 

🤝In her Monday mañanera, President Sheinbaum said Mexico would be in the “best position” to facilitate communication between the U.S. and Cuba, but only if both countries agree to dialogue.

🛡️ President Sheinbaum announced that members of her cabinet will travel to the U.S. on January 23 as part of security cooperation efforts to combat drug trafficking.

📈 Analysts warn Mexico’s inflation will climb above 4% in 2026, driven by World Cup demand, new taxes, higher wages, and tariffs.

💰 Mexico raised a record US$9 billion in sovereign debt to start 2026. 

🍎 Mexico’s Economy Ministry launched an anti-dumping investigation into U.S. apple imports after producers accused exporters of unfair pricing that has undercut domestic growers for years.

💻 Querétaro’s tech sector is forecast to grow 23% in 2026.

🥶 Cold front 27 is sweeping across Mexico this week, bringing freezing temperatures down to –15°C, heavy rain, and possible snow across up to 24 states.

🍎 Your Health Pulse

What Are the Risks of Being Uninsured in Mexico?

Many foreigners assume that healthcare in Mexico is always affordable and that paying out of pocket is no big deal.

That assumption can get expensive fast.

Private hospitals in Mexico often require large upfront payments before treatment, and non-residents are not eligible for public healthcare. A single emergency can quickly turn into a major financial crisis, especially as medical costs continue to rise faster than general inflation.

Being uninsured doesn’t just affect what you pay…it can affect where you’re treated, how quickly you receive care, and what options are even available to you in an emergency.

Read the full article here.

📍Immigration Essentials

Can You Work in Mexico? It Depends on Your Visa 

If you plan to work in Mexico, the key question isn’t the job – it’s your immigration status. Mexico ties work authorization directly to residency, and getting it wrong can cause serious problems later.

Job Offer for Non-Residents
If you are outside Mexico or in the country as a visitor, you cannot work legally without prior authorization. A Mexican employer must be registered with INM and must apply for visa authorization for a job offer on your behalf. A foreigner cannot apply on their own. Once approved, you complete the process at a Mexican consulate and then enter Mexico to exchange the visa for a residence card. See requirements here.

Temporary Resident
A temporary visa does not automatically allow you to work. To work for a Mexican employer or provide paid services in Mexico, your card must state “con permiso para trabajar.” The employer initiates the request with INM. Government fees typically include authorization to work and the temporary resident card, paid in Mexico. Students face additional restrictions and separate approval. See requirements here.

Permanent Resident
Under Article 52, Fraction IX of Mexico’s Migration Law, permanent residents may live in Mexico indefinitely with permission to work for remuneration, without a separate work permit.

🧩 Life in México

_{By George Reavis, founder of MexEdge}

Why 2026 Could Be a Wild Year for the Peso

If 2025 taught us anything, it’s that nobody can reliably predict where the Peso is going.

And 2026 is shaping up to be even less predictable. 

The uncertainty isn’t going away. If anything, there are more wildcards on the horizon than we’ve seen in years – and each one has the potential to move currency markets quickly.

USMCA Review - The U.S.-Mexico-Canada trade agreement faces its first six-year review in 2026. This review will determine whether all three countries agree to extend the agreement or begin renegotiation discussions. Any uncertainty around the outcome could move currency markets quickly. Trade relationships are the foundation of cross-border investment confidence, and even rumors of renegotiation can trigger volatility.

Fed Leadership Transition - Federal Reserve Chair Jerome Powell’s term ends in May 2026. A change in Fed leadership often brings shifts in monetary policy direction, communication style, and market expectations. The Dollar’s strength or weakness is heavily influenced by Fed policy, and a new chair means new uncertainty about the path forward.

Tariff Situation - Trade tensions between the U.S. and Mexico remain a factor. Throughout 2025, tariff threats and negotiations created headlines and moved markets. This dynamic isn’t resolved. Any escalation could weaken the Peso. Any de-escalation or new agreements could strengthen it. The direction depends on political decisions that are impossible to forecast.

Banxico’s Rate Path - Mexico’s central bank has been cutting interest rates throughout 2025, bringing the benchmark rate down to 7.00%. Further cuts are expected in 2026. As Mexico’s interest rate advantage over the U.S. narrows, the carry trade dynamics that have supported the Peso will shift. How much and how fast remains to be seen.

The Unknown Unknowns - Beyond the factors we can identify, there are always the surprises. Elections in various countries, geopolitical events, economic data that defies expectations, natural disasters, policy announcements that come out of nowhere. History shows that the events with the biggest market impact are often the ones nobody saw coming.

Any of these factors could push the Peso stronger. Any of them could push it weaker. 

And the move can happen fast. We’ve seen swings of over 20% in a matter of months.

With this many wildcards on the table, 2026 is not the year to gamble on timing…especially if you are investing in real estate.

If you're buying property or building in Mexico in 2026, currency volatility could add tens of thousands of dollars (or more) to your final cost. Instead of hoping the exchange rate cooperates, you can lock in your exchange rate and protect your budget.

MexEdge helps Americans and Canadians protect their property purchases in Mexico from currency fluctuations, so unexpected moves in the Peso don’t derail plans.

Their free Currency Risk Evaluation Call shows you exactly how much currency risk you’re exposed to, what your options are, and how much you could potentially save.

>> Book Your Free Currency Risk Evaluation

🇲🇽 Viva México

The Day Baby Jesus Moves House in Xochimilco

Every February 2 on Día de la Candelaria, thousands fill the streets of Xochimilco for Mexico’s most unusual moving day…

Baby Jesus changes houses.

Let me explain. The Niñopa is a centuries-old wooden figurine of the baby Jesus that’s 51 cm tall and weighs less than a kilo. Created more than 400 years ago, he is one of the most cherished sacred figures in Xochimilco.

February 2 marks the Cambio de Mayordomía, the moment when the Niñopa is formally passed from one family to the next.

Becoming a mayordomo is not something that happens quickly. Families can wait 30 to 40 years. They place their names on a community-run waiting list, maintained by Niñopa caretakers, and positions can be passed down through generations. Devotion, service, and readiness determine who is chosen. 

The family entrusted with the Niñopa welcomes him into their home for one year, and daily life revolves around him from that moment on.

The baby Jesus arrives with his own crib, toys, and even jewelry. Caretakers tend to him like a family member. He is dressed in one of his many elaborate handmade outfits, part of a wardrobe built over centuries by devoted families, carried to community events, offered food, and sung lullabies.

The Mayordomos' home also opens to a steady stream of pilgrims. The emotional and financial investment is massive, but families take it on with pride, hoping for the blessings he’s believed to bring: healing and protection.

And yet, for all the reverence that surrounds him, the Niñopa is still a child…and a mischievous one, according to those who care for him. Families swear they’ve woken to scattered toys, rumpled clothing, and tiny footprints traced through the house.

After a special Mass, the Niñopa is formally handed from one family to the next. Church bells ring, fireworks explode, and the celebration bursts into the streets.  

The 2026 caretakers will be announced during the handover ceremony on February 2 at San Bernardino de Siena Parish.

Check out the official Niñopa Facebook page, where caretakers share information and updates on its care and conservation.

🪷 Viva Wellness

Why Your Skin Will Love Prickly Pear Seed Oil

Prickly pear seed oil, pressed from the seeds of the nopal cactus, is one of Mexico’s most prized beauty ingredients. Lightweight and fast-absorbing, it provides nourishment without leaving a heavy or greasy feel on the skin.

Naturally Rich in Vitamin E
Prickly pear seed oil contains notably high levels of vitamin E compared to many other plant oils. This antioxidant content helps support the skin’s defense against environmental stress and contributes to overall skin health.

Essential Fatty Acids for Hydration and Skin Support
The oil is rich in linoleic acid (Omega-6) and oleic acid (Omega-9), fatty acids that help support the skin barrier and maintain moisture balance. This makes it suitable for a wide range of skin types, including oily and blemish-prone skin.

Antioxidants That Help Calm the Skin
Thanks to its antioxidant and anti-inflammatory properties, prickly pear seed oil is often used to help soothe skin that appears red, irritated, or stressed, particularly after sun exposure.

Supports Smoother, More Even-Looking Skin
Regular use of antioxidant-rich oils like prickly pear seed oil can help improve the appearance of skin texture and tone, supporting a more balanced and healthy-looking complexion.

Want the full list of benefits and how to use it? Read the full article here.

🎉 ¡Vamos! Events

León State Fair 2026 – Jan 9–Feb 4, León, Guanajuato
Celebrated since 1876, this iconic state fair returns with amusement rides, concerts, livestock exhibitions, commercial pavilions, and food halls, plus free shows at the Teatro del Pueblo and family attractions across themed zones throughout the fairgrounds. More info here.

Feria de la Candelaria 2026 – Jan 29–Feb 8, Tezontepec de Aldama, Hidalgo
A traditional Candelaria fair honoring the Virgin of Candelaria with religious celebrations, cultural activities, local food, and nightly entertainment, including free shows at the Teatro del Pueblo and select ticketed concerts. More info here.

Tamale Fair at the National Museum of Popular Cultures – Jan 29–Feb 2, Coyoacán, CDMX
This free-entry gastronomic fair returns for its 32nd edition, bringing traditional cooks from across Mexico to the National Museum of Popular Cultures with a wide variety of regional tamales, just in time for Candlemas. The event runs daily from 11 a.m. to 7 p.m. at Av. Hidalgo 289. More info here.

Coacalco Tamale Fair 2026 – Jan 30–Feb 8, Coacalco de Berriozábal, Estado de México
This free-entry fair features dozens of vendors serving classic and regional tamales, atole, and other hot drinks, plus amusement rides, crafts, and nightly music near Plaza Coacalco. A main-stage highlight includes Carro Show performing on Feb 1. More info here.

Tamale and Atole Fair of Cholula – Jan 31–Feb 2, San Pedro Cholula, Puebla
San Pedro Cholula hosts its annual Tamale and Atole Fair at Parque Soria, offering traditional and gourmet tamales – plus artisanal atole, champurrado, and pinole – as part of the Candlemas celebrations in this Pueblo Mágico. More info here.

Tamale and Atole Fair – Jan 31–Feb 1, Roma Norte, CDMX
This free-entry food fair celebrates one of Mexico’s most beloved traditions with dozens of exhibitors offering tamales from across the country – plus atole, champurrado, and other traditional drinks – just ahead of Candlemas. The event runs both days from 10 a.m. to 7 p.m. at Jalapa 38 in Roma Norte. More info here.

Feria de la Candelaria – Jan 31–Feb 16, San Miguel de Allende, Guanajuato
This free-entry flower fair fills Parque Municipal Zeferino Gutiérrez with 40+ exhibitors selling plants, flowers, trees, pots, soil, and gardening supplies, alongside family-friendly cultural activities tied to the traditional Candelaria celebrations. More info here.

💡 Say It in Spanish

​​Se me olvidó.

Translation: I forgot. Literally: It forgot itself to me.

You’ll hear some say yo olvidé…which technically works. But most Mexicans use se me olvidó.

It gently shifts the blame away from you and onto…life. It’s casual, natural, and what you’ll hear every day when someone forgets a name, an appointment, or where they left their keys.

If you’re trying to improve your Spanish, I recommend Complete Spanish Step-by-Step. I’ve been using it for the past three months, and it’s helped my Spanish by leaps and bounds.

Adventure outside the ordinary

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So, where will you go? Explore more than 85 destinations worldwide with a small group of up to 16, and an expert local leader who’ll help you to truly experience the destination.

REI Co-op members save 15% on REI Exclusive trips and receive a 20% off coupon to use at REI Co-op after booking REI Recommended trips.

Find your next adventure

_{For T&Cs and to view the full collection of trips in 85+ destinations, visit rei.com/travel.}

🎯 Trivia Answer

Sistema Ox Bel Ha.

Discovered in 1996 near Tulum, Sistema Ox Bel Ha is the longest known underwater cave system on Earth. As of 2025, explorers have mapped 524 kilometers (325.6 miles) of flooded passages – and researchers expect the system to continue expanding as exploration continues.

Its name comes from the Maya language and means “Three Paths of Water,” an apt description for a vast, interconnected world hidden beneath the jungle.

What makes Ox Bel Ha even more remarkable is that it supports a rare underground ecosystem. In 2018, researchers discovered that methane seeping down from the jungle floor feeds microbes and bacteria inside the caves. These microbes, in turn, sustain crustaceans and unique cave fish – including an eyeless albino species adapted to complete darkness.

Check out the underwater video tour…it’ll take your breath away.

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