The euro is trading at an average of 21.73 Mexican pesos at the start of trading today, representing a 0.61% change compared to the previous day’s 21.87 pesos.
Compared to the last seven days, the euro is down 0.85%, although year-on-year it still has a 0.7% increase.
Regarding today’s fluctuations compared to previous days, this represents five consecutive days in the red. Regarding volatility over the last few days, it is 3.65%, which is significantly lower than the annual volatility figure (12.68%), showing less fluctuations than the general trend indicates in recent days.
The Mexican Peso and the Euro
The Mexican peso has not only performed well against the US dollar, but has also shown strength against the euro over the past year.
The Mexican currency, one of the few that has not depreciated against the dollar despite global issues such as inflation, has posted its best performance since its best run in 2016.
Colloquially known as the “superpeso,” the Mexican currency’s strength is largely due to the Bank of Mexico’s (Banxico) decisions regarding its benchmark rates, which have simultaneously increased its appeal to investors.
With the stability achieved in 2023 in public finances and remittances, the Mexican government has estimated that it could break its record for remittances in 2022 ($58.487 billion).
In contrast, the euro has been approaching parity with the dollar and has even reached a value lower than one dollar, a situation not seen in 20 years, partly due not only to global inflation but also to Russia’s invasion of Ukraine, which led to a drop in commodity prices.
Economic Forecasts for 2025
The peso-dollar relationship during 2024 was marked by contrasts. The year began with the Mexican currency strengthening against the US dollar. The greenback reached 16 pesos per unit, something that hadn’t happened in almost a decade. The nickname “superpeso” was more enduring than ever.
However, as the peso advanced, it depreciated mainly due to political decisions, such as the controversial Judicial Reform and the elimination of autonomous bodies.
The decline of the Mexican currency worsened with Donald Trump’s campaign, his electoral victory as president of the United States, and his threats to impose tariffs on all Mexican—and Canadian—products if Mexico did not improve border security.
Thus, the dollar returned to 20 pesos, well above the Bank of Mexico’s (Banxico) forecasts.
For 2025, Banxico expects the dollar to average between 20.24 pesos and 20.69 pesos, a conservative forecast considering the repercussions that Trump’s statements and policies in the White House would have on the exchange rate.
Inflation was relatively stable in 2024, hovering around 4%, except in June when it almost reached 6%, according to data from the National Institute of Statistics and Geography (INEGI).
This year, Banxico forecasts that inflation will fall below four percentage points, reaching 3.8%.
Regarding Gross Domestic Product (GDP) growth, the low forecasts remain. The central bank expects GDP growth of just 1.2%.
Source: infobae
