The US dollar is trading at 19.97 Mexican pesos on average at the beginning, which represents a change of 0.08% compared to the figure of the previous session, when it ended at 19.96 pesos.
If we consider the data from the last week, the US dollar shows an increase of 0.47%, so in year-on-year terms it still accumulates an increase of 13.88%.
If we compare the value with previous days, it reverses the result of the previous day, where it obtained a drop of 0.52%, showing itself incapable of consolidating a defined trend in recent dates.
Regarding the volatility of the last week, it presents a clearly lower performance than the volatility shown by the figures for the last year, so that it is having a more stable behavior than the general trend indicates in recent days.
According to the exchange rate analysis of the financial group Monex, at the opening of the American session, the Mexican peso cut losses and is positioned in twelfth place among the currencies of emerging countries that show the greatest losses against the dollar.
It explained that the exchange rate today surpassed the first resistances above the psychological level of 20 pesos, affected by weak local economic data, which are in line with the recent decrease in the economic growth projections for 2024 of the International Monetary Fund (IMF).
Banxico’s forecasts
The Mexican economy has suffered a series of contrasts, which will continue, according to the forecasts of the Bank of Mexico (Banxico) for this 2024.
Regarding the exchange rate, the central bank expects the dollar to be sold throughout the year between 17.68 pesos and up to 18.67 pesos per unit. A conservative forecast considering that the national currency shattered the 2023 forecasts by breaking the floor of 17 pesos per unit, which had not been seen for eight years.
For its part, inflation is expected to continue its downward trend, since it reached its historical maximum of 8.7% at the end of 2022. Banxico forecasts inflation of 4.02% in 2024, however, the ideal of three percentage points is not expected to be reached soon.
The above, however, contrasts with the economic growth forecasts, since Banxico expects it to be 2.29% in 2024.
What is the Mexican peso
The Mexican peso is the legal tender of Mexico and it is the first currency in the world to use the $ sign, which was later taken up 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 a continent-wide level, only behind the US and Canadian dollars.
Currently, the abbreviation MXN is used to refer to the Mexican peso, but before 1993 the initials MXP were used.
The coins normally used in Mexico are semicircular in shape and have the national emblem on the back. One Mexican peso is equivalent to 100 cents. There are coins of 1, 5, 10 and 20 pesos; while there are bills of 20, 50, 100, 200, 500 and 1,000 pesos.
Source: infobae
