Mexico: so the dollar opened against the peso on Wednesday, January 10

On an annual basis, the dollar continues to decline against the Mexican peso (Pixabay)

Today U.S. $ To be discussed at the beginning of work. Average 16.99 Mexican pesosso this implied a rise of 0.13% from the previous day’s price, which ended at an average of MXN 16.97.

Considering the last seven days, U.S. $ marks the fall 0.12%that is, year-on-year there is still a decline 6.79%.

In relation to past dates, add two consecutive sessions of positive numbers. The volatility measure shows a lower performance than the volatility shown by last year’s data, so it has more stable behavior than usual recently.

The Mexican peso remained stable in the early days of 2024, with its price maintaining positive momentum and below the 17-peso barrier in the exchange rate.

Economy of Mexico The country has experienced a number of contrasts in recent years. Despite the lack of growth – even before the pandemic – it has recently been recovering.

In turn, inflation began to rise from the beginning of 2021, reaching a historical high of 8.7% in September next year. Since then it has been declining. This is largely due to the monetary policy of the Bank of Mexico (Banxico), which decided to increase the base rate.

While the same central bank assures that overall inflation is already low in line with its historical behavior, this “does not mean that the disinflationary process should be taken for granted as levels are still above target.”

Government Council of Banxico “the inflation outlook is estimated to be challenging and uncertain” and “with the risk of upside”, so – and to maintain the 3% target – “it will be necessary to maintain the base rate at its current level for an extended period.”

From my side, weight He experienced the best case 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 lowest point in July 2023, when it was quoted at just over 16 pesos per unit, a figure not seen since 2015. The quote was repeated at the end of the year.

In addition, the Mexican currency did not live up to Banxico’s forecasts. At the beginning of the year, he assured that the dollar would average above 20 pesos per unit in 2023, and although he adjusted his forecasts as the months passed, the truth is that the exchange rate remained even lower.

Banxico currently expects the dollar to trade between 17.68 and 18.67 pesos per unit during 2024.

The Mexican peso is the legal tender of Mexico and the first currency in the world to use the dollar sign, which was later adopted by the United States to represent the dollar.

The currency is the fifteenth most traded currency in the world, as well as the most traded in Latin America and third on the continent after the US and Canadian dollars.

Currently, the abbreviation MXN is used for the Mexican peso, but until 1993 the abbreviation MXP was used.

Coins commonly used in Mexico are semicircular in shape and feature the national coat of arms on the reverse. One Mexican peso is equal to 100 cents. There are coins in denominations of 1, 5, 10 and 20 pesos; and in denominations of 20, 50, 100, 200, 500 and 1000 pesos.

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