![]() Other things that influence the peso’s value For example, in December 2021 the Banxico survey estimated the peso would close at around 20.65 to the US dollar in fact the Mexican currency closed the year more than one peso stronger than that consensus estimate. It’s worth noting that foreign current exchange-rate predictions are subject to many variables and uncertainties, with consensus estimates changing as events unfold and the exchange rate fluctuates in response to those events throughout the year. But they also expect inflation to slow to 5.1%.Ĭurrency forecasts reflect what could be expected given estimates for inflation, economic growth, interest rates and other economic variables, both in Mexico and the US, but they don’t consider extraordinary events as these are unknowns. In Banxico’s December 2022 survey, the median estimate for the exchange rate at the end of 2023 was 20.80 pesos per dollar, with estimates ranging from 19.25 to 22 pesos per dollar.Īs in 2022, economists are somewhat pessimistic about economic growth prospects for this year, expecting GDP to increase just 0.9%. It’s one of the world’s most-traded currencies and is the most-traded of Latin America’s currencies. Mexico’s peso is a free-floating currency on the world’s foreign exchange markets. What to expect for the Mexican peso in 2023? About 17.2 million tourists arrived by air, 56% more than the previous year, but there were 10% fewer tourists crossing the border and staying for at least one night. The number of foreign visitors in the January-October period rose 19% to 52.7 million, with spending up 49% at $22.5 billion. Mexico’s tourism sector also grew in 2022 Remittances -money sent to Mexico by people living abroad, principally from the USA- reached $53.1 billion by November, 13% more than in the first 11 months of 2021. The higher interest rates help the peso as they encourage investors to buy the currency, but can also discourage consumers from spending or small firms from taking on credit to grow their business. The rise in inflation led the Bank of Mexico to raise its reference interest rate from 5.5% at the end of 2021 to 10.5% at the end of last year. The rate of inflation started to recede toward the end of the year, and was 7.8% at the end of December 2022. The Mexican government helped to keep inflation down by subsidizing gasoline and diesel using extra money it earned from prices of crude oil exported by Pemex, the state oil company. This was mostly because of increases in the cost of food. Inflation was a problem last year, as consumer prices rose by the most since the year 2000. by record remittances sent from people in the U.S.by exports rising to their highest level ever and.the Bank of Mexico raising interest rates.Interest rates, exports, and remittances backed the peso in 2022Īside from better-than-expected economic growth and further employment gains, the peso was supported in 2022 by three principal factors: This was due to a pickup in manufacturing goods for export, and a continued recovery in services that had still been lagging somewhat after the Covid-related restrictions. Gross domestic product is expected to have ended 2022 up 3%, more than what most economists had been predicting for much of the year. The economy continued its recovery from the 2020 recession, and by the third quarter goods and services output had returned to 2019 “pre-pandemic” levels. The currency also demonstrated resilience and stability, with the exchange rate fluctuating between 19 and 21.50 pesos to the dollar through 2022. The cash rate (Policy Rate: Month End: Overnight Target Rate) was set at 11.000 % pa in Feb 2023.The Mexican peso had another solid year in 2022, closing at 19.50 to the US dollar, posting a 5.1% gain in the 12 months to December 31.Its Long Term Interest Rate (UDIBONOS Average Yield: 10 Years) was reported at 4.270 % pa in Feb 2023.In the latest reports, Mexico Short Term Interest Rate: Month End: Interbank Equilibrium Rate was reported at 11.418 % pa in Feb 2023.Exchange Rate against USD prior to November 1993 is sourced from the International Monetary Fund. Federal Reserve Board provides average Exchange Rate against USD. The data reached an all-time high of 24.180 in Apr 2020 and a record low of 0.012 in Jun 1974.ĬEIC extends history for monthly average Exchange Rate against USD.Mexico Exchange Rate against USD data is updated monthly, available from Jan 1957 to Feb 2023.Mexico Exchange Rate against USD averaged 18.637 (USD/MXN) in Feb 2023, compared with 18.971 USD/MXN in the previous month.Key information about Mexico Exchange Rate against USD 1957 - 2023 | Monthly | USD/MXN | CEIC Data
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