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After the opening of markets the American dollar is paid at the beginning of the day today 16.93 Mexican pesos on averagewhich represented a change of 0.45% compared to the 17.01 Mexican pesos on average in the previous session.
If we consider the data from the last week, the American dollar marks a drop in 0.18%so that for a year now there has still been a drop in 6.13%.
If we compare the data with previous days, it chains three successive dates in red numbers. The volatility for the last week is 3.64%, which is a figure clearly lower than the annual volatility figure (9.77%), so it has had a more stable behavior than usual recently.
Mexico’s economy has experienced a series of contrasts in recent years. With little increase – even before the pandemic – it has been recovering recently.
For its part, inflation began to grow from the beginning of 2021, reaching its historical maximum of 8.7% in September 2022. Since then it has been declining. The above is largely due to the monetary policy of the Bank of Mexico (Banxico), which has opted to increase the reference rate.
Although the same central bank assures that general inflation is already at low levels according to its historical behavior, this “does not mean that the disinflationary process should be taken for granted, since the levels are still above the objective.”
The Banxico Governing Board “estimates that the inflation outlook will be complicated and uncertain” and “with upward risks”, therefore – and to maintain the 3% goal – “it will be necessary to maintain the reference rate at its current level for a prolonged period.”
For its part, the peso has experienced a better scenario. Since mid-2022, the Mexican currency has been strong against the dollar to such an extent that it has earned the nickname “superweight.”
The dollar reached its minimum point in July 2023, when it was quoted at just over 16 pesos per unit, a figure that had not been seen since 2015. A quote that was repeated at the end of the year.
In addition, the Mexican currency broke with Banxico’s forecasts. At the beginning of the year he assured that the dollar would close 2023 above 20 pesos per unit on average and, although he adjusted his forecasts as the months progressed, the truth is that the exchange rate remained even lower.
Currently, Banxico expects that during 2024 the dollar will trade between 17.68 pesos and up to 18.67 pesos per unit.
The Mexican peso is the legal tender of Mexico and is the first currency in the world to use the $ sign, which was later adopted by the United States for the dollar.
This currency is the fifteenth most traded currency in the world, as well as the most traded in Latin America and the third on the continent only behind the US and Canadian dollars.
Currently the abbreviation MXN is used to talk about the Mexican peso, but before 1993 the acronym MXP was used.
The coins normally used in Mexico are semicircular in shape and have the national coat of arms on the reverse. One Mexican peso is equivalent to 100 cents. There are coins of 1, 5, 10 and 20 pesos; while in bills there are 20, 50, 100, 200, 500 and 1,000 pesos.
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