Recently, the exchange rate for the US dollar closed at 18.16 pesos in Mexico, marking a 1.22% increase from the previous day’s rate of 17.94 pesos. Over the course of the last week, the dollar has gained 2.5% in value, and on an annual basis, it remains up by 5.94%.
This recent increase halted a trend of stability that had been observed during the previous two days. The volatility of the currency in the past week was recorded at 10.92%, which is slightly below the annual volatility figure of 11.7%. This suggests that the dollar’s value has been more stable than expected in recent days.
The economic landscape in Mexico has been characterized by various shifts, a trend that is expected to persist according to forecasts from the Bank of Mexico (Banxico) for 2024. The central bank anticipates that the dollar will range between 17.68 pesos and 18.67 pesos throughout the year. This conservative estimate follows the remarkable performance of the peso in 2023, where it fell below 17 pesos, a level not seen in eight years.
In terms of inflation, it is expected to continue its downward trend after peaking at 8.7% at the end of 2022. Banxico projects an inflation rate of 4.02% for 2024, although reaching the ideal rate of around 3% soon is not likely. Contrastingly, economic growth is forecasted to be 2.29% in 2024.
The Mexican peso is the official currency of Mexico and holds the distinction of being the first currency to use the dollar sign ($), a symbol later adopted by the United States for its dollar. Currently, the peso is the fifteenth most traded currency globally and the most traded in Latin America, ranking third on the continent after the US and Canadian dollars.
Today, the Mexican peso is abbreviated as MXN, a change from the previous notation of MXP used until 1993. Coins typically have a semicircular shape and feature the national emblem on the reverse side. One peso is divided into 100 centavos, and commonly used coin denominations include 1, 5, 10, and 20 pesos, while banknotes come in 20, 50, 100, 200, 500, and 1,000 pesos.
For further reading on economic updates in Mexico, you can visit sources like Reuters or Bloomberg.
Image and News Source: https://www.infobae.com/mexico/2024/07/23/mexico-cotizacion-de-cierre-del-dolar-hoy-23-de-julio-de-usd-a-mxn/
