Mexican Peso Exchange Rate Trends and Forecasts 2024: Updates on Dollar Performance, Inflation, and GDP Growth

2024-04-25 20:48:25

Stock photo of dollar bills. (EFE/Juan Ignacio Roncoroni)

He American dollar was paid at closing time 17.19 pesosso that it represented a change of 0.71% compared to the figure of the previous session, when it marked 17.07 pesos.

Taking into account the last seven days American dollar accumulates a promotion of 0.67%; On the contrary, in interannual terms there is still a decline in 1.42 percent.

As for the changes this day compared to previous days, it linked two consecutive sessions of rise. The volatility over the past seven days gave a slightly lower performance than the volatility shown by the data from the past year, which shows that it has a more stable behavior than usual over the past few days.

Mexico’s economy has experienced a series of contrasts, which will continue, according to Bank of Mexico (Banxico) forecasts for 2024.

As for the exchange rate, the central bank expects the dollar to trade throughout the year between 17.68 pesos and up to 18.67 pesos per unit. A conservative forecast considering that the national currency destroyed the 2023 forecasts, breaking the floor of 17 pesos per unit, which has not been seen in eight years.

In turn, 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, but it is not expected to be reached soon ideally in three percentage points.

However, the above contrasts with gross domestic product (GDP) growth forecasts, as Banxico expects it to be 2.29% in 2024.

The Mexican peso is the fifteenth most traded currency in the world. (Banxico)

The Mexican peso is legal tender in Mexico and is the first currency in the world to use the $ sign, which was 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 in the continent only behind the US and Canadian dollars.

Currently, the abbreviation MXN is used to talk about the Mexican peso, but before 1993 the acronym MXP was used.

The coins commonly used in Mexico are semicircular and have the coat of arms on the reverse. One Mexican peso is equal to 100 cents. There are coins of 1, 5, 10 and 20 pesos; while in bills there are 20, 50, 100, 200, 500 and 1000 pesos.

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