The US dollar reported a slight advance after being negotiated at an average of 19.94 pesos this morning, which involved a change of 1.49% if compared with the 19.65 pesos of yesterday’s session, representing a setback for the Mexican currency.
According to the Monex financial group’s exchange rate analysis, the Mexican peso positioned itself today in second place among emerging country currencies that have lost the most value against the dollar, due to nervousness surrounding judicial reform and its implications on Mexico’s economy.
Regarding the last seven days, the US dollar marks an increase of 2.08% and in the last year it still maintains a gain of 14.63%.
With respect to previous days, the data changes from the previous value, when it ended with a decrease of 1.88%, being unable to consolidate a stable trend over the past few days. The volatility figure is visibly higher than that accumulated in the last year, so the value experiences greater variations than the general trend.
Banxico’s forecasts
Mexico’s economy has experienced a series of contrasts, which will continue according to Banxico’s forecasts for 2024.
On exchange rates, the central bank expects the dollar to sell throughout the year between 17.68 pesos and up to 18.67 pesos per unit. A conservative forecast considering that the national currency shattered last year’s predictions by breaking below the 17-peso threshold per unit, a level not seen since eight years ago.
On inflation, it is expected to continue on the downward trend after reaching its historical high of 8.7% in late 2022. Banxico forecasts an inflation rate of 4.02% for 2024; however, it is not expected that this will be reached soon either.
The above contrasts with growth forecasts for the Gross Domestic Product (GDP), as Banxico expects a GDP growth of 2.29% in 2024.
What is the Mexican peso?
The Mexican peso is the official currency 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 in the world, as well as the most traded in Latin America and third in continent only behind the US dollar and the Canadian dollar.
Currently, the abbreviation MXN is used to talk about the Mexican peso, but before 1993, MXP was used.
Mexican coins normally used have a semicircular shape and have the national shield on the reverse. One Mexican peso is equivalent to 100 centavos. Coins of 1, 5, 10, and 20 pesos are used, while in bills there are 20, 50, 100, 200, 500, and 1,000 pesos.
Source: Infobae
