The Mexican currency is one of the 10 most traded currencies in the international foreign exchange market, the most traded in Latin America, and the third most traded on the entire continent. Its price is of great importance both nationally and regionally, as the country is known for being one of the main trading partners of Canada and the United States.
The exchange rate is the value of a currency expressed in terms of the currency of another country. This conversion facilitates the international trade of goods and services, as well as the transfer of funds between regions. Canada and Mexico maintain an important relationship as a result of the USMCA trade agreement. For these reasons, below we share the exchange rate between the Canadian dollar and the Mexican peso.
The Canadian dollar is trading at 14.0520 pesos on average at the start of trading today. The value of the currency at the close of trading yesterday was 14.0319 pesos.
According to information from Investing, the annual exchange rate for this currency ranges between 12.741 and 14.9402 pesos, representing a 7.54% variation over the period.
Various factors determine the exchange rate; monetary policies, inflation, the balance of trade, and consumer expectations are some of the issues that influence the value of currencies.
According to official statistics from the latest census conducted in Canada, Mexicans are the third-largest population in Latin America and the Caribbean and the first among Spanish-speaking countries in the region. In 2021, a total of 132,220 people originally from Mexico were counted living in the country.
The Canadian government estimated that 75.8 percent of this population are permanent residents who obtained Canadian citizenship through naturalization or were born in Mexico to a Canadian father or mother. 24.2 percent were classified as non-permanent residents. This group includes Mexicans who obtained a work visa or exchange students.
According to the Mexican government, remittances from Canada reached $216 million during the first quarter of this year, and a total of $930 million were sent in 2023.
Canadian Economy
In the foreign exchange market, the supply and demand of currencies will determine the exchange rate. Public and monetary policies have a great influence on currency fluctuations.
The Canadian dollar is the official currency of the United States and is represented by the acronym CAD in the foreign exchange market. This currency has been used throughout most of the country’s history.
Canada has historically been one of the United States’ main trading partners, and under the United States-Mexico-Canada Agreement (USMCA), approved in 2020, it maintains a strong trade relationship with the domestic market.
According to the Organization for Economic Cooperation and Development (OECD), the North American country is heading for a period of moderate growth after the “hard blow” dealt by the coronavirus pandemic.
In 2021, the country managed to position itself as the United States’ main trading partner with a 14.5 percent market share.
Economic forecasts for this year
Economists expect Canada’s financial situation to become less difficult as the population makes it through the first half of the year. The country’s Central Bank has maintained restrictive economic policies to slow inflation.
The coronavirus pandemic and rising prices in 2021 prompted the Central Bank to strengthen its efforts to slow inflation. The country’s economy was driven last year primarily by historic population growth.
Economists expect the Canadian economy to move toward the objectives set by the financial institution this year and to enter a growth path with strict monetary policies.
Source: infobae
