English Translation
This place is extremely hot.
I wonder whether you can use the same expression about cold.
In the corpus sourced from Tatoeba, there are sentences like “Hoy hace un frío que pela”.
I cannot seem to find the sentence on Tatoeba, to see if there is some more info, because to me the original sentence sounds very strange. “… que se las pela”, is usually used with “correr” to indicate that something or someone is running very fast (even if on RAE’s site it is mention that it is also possible to add it to other actions).
“Hacer un frio que pela”, on the other hand, is quite common.
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It’s in the Spanish Idioms collection, which is sourced from somewhere else.