This is how the dollar was born in 2024 in Mexico

The US dollar is paid at the beginning of January 1, 2024 at 16.96 Mexican pesos on average, implying a change of 0.01% from the value of the previous session. Although January 1st is a public holiday, exchange activity continues at airports.

Compared to the profitability of the last seven days, the US dollar accumulates a decline of 0.06%, so compared to a year ago it still accumulates a decline of 6.9%.

Comparing this data with that of previous dates breaks with the series of market prices of the last three sessions. Referring to the volatility of the last week, it is significantly lower than that accumulated over the last year, therefore its price is presenting less variations than normal in the last few days.

Over the past year, the dollar was well below its average of 20 to 21 pesos. (TERCERO DÍAZ/CUARTOSCURO.COM)

Mexico’s economy has experienced a series of contrasts in recent years. With a slight increase – even before the pandemic – it has recently recovered.

For its part, inflation began to rise from the beginning of 2021, reaching its all-time high of 8.7% in September of the following year. It has been declining ever since. This is largely due to the monetary policy of the Bank of Mexico (Banxico), which decided to increase the reference rate.

Although Banxico itself assures that general inflation is already at low levels compared to its historical behavior, this “does not mean that the disinflationary process should be taken for granted, as levels are still above the target”.

Banxico’s board of directors “estimates that the inflation outlook will be complicated and uncertain” and “with upside risks”, therefore – and to maintain the 3% target – “it will be necessary to keep the reference rate at the current level for a prolonged period period.”

For its part, the peso experienced a better scenario. Since mid-2022, the Mexican currency has been strong against the dollar to the point of earning it the nickname “superpeso.”

The dollar reached its minimum in July 2023, when it quoted just over 16 pesos per unit, a figure not seen since 2015. A quotation that was repeated at the end of the year.

Furthermore, the Mexican currency broke from Banxico’s forecast. At the beginning of the year he assured that the dollar would close 2023 above 20 pesos per unit on average and, although he modified his forecasts as the months passed, 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 legal tender in Mexico and is the first currency in the world to use the $ symbol, 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 indicate the Mexican peso, but before 1993 the acronym MXP was used.

The coins normally used in Mexico are semicircular in shape and bear the national coat of arms on the back. One Mexican peso is equal to 100 cents. There are coins of 1, 5, 10 and 20 pesos; while in the banknotes there are 20, 50, 100, 200, 500 and 1,000 pesos.

2024-01-01 15:38:00
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