This is how the dollar began in 2024 in Mexico

He U.S. $ payable at the beginning of January 1, 2024 in favor of Average 16.96 Mexican pesos, which implied a change of 0.01% from the previous session’s value. Although this 1st of January It’s a day off now, and exchange activity continues at airports.

In terms of profitability over the past seven days, U.S. $ decrease accumulates 0.06%so the fall has accumulated over the year 6.9%.

Comparing this data with previous dates, it breaks with the streak of market quotes from the last three sessions. As for last week’s volatility, it is clearly lower than the volatility accumulated over the past year, so its price has shown less fluctuation than usual in recent days.

Economy of Mexico has experienced a number of contrasts in recent years. While growing slightly – 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 (Banksico), who decided to increase the base rate.

Although Banxico himself 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, since levels are still above target.”

For this reason, Banxico’s Board of Governors “assesses that the inflation outlook will be challenging and uncertain” and “with upside risks” and to maintain 3% target“It will be necessary to maintain the base rate at the current level for a long period.”

For its part, the peso experienced a 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 in a range of P17.68 to P18.67 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.