The Mexican financial system continues to be resilient.
The global economy has been recovering, even though projections for 2023 point to a slowing of growth rates compared to the previous year. Global inflation...
MEXICO CITY- The Mexican peso started the week last Wednesday at its highest level since 2015, closing at 16.85 units per US dollar, a manifestation of the "superpeso" phenomenon.
"The peso continues to strengthen, and wages are becoming more attainable. The exchange rate is at 16.85 to the dollar, a level not seen since 2015, according to Jesus Ramirez Cuevas, the president's spokesperson .
According to Gabriela Siller, director of the Banco Base's Economic Analysis, last Wednesday's cotization is the lowest since December 7, 2015, when the Mexican peso was trading at 16.6551 US dollars per US dollar.
Siller also stated, "If the price follows the same trend seen since July of last year, it could appreciate as high as 16.74 pesos per dollar this year."
The incident takes place during a phenomenon that experts have dubbed "superpeso," which refers to the historical appreciation of the peso driven, in particular, by the process of relocating the supply chain from China to Mexico or "nearshoring."
This suggests that the Mexican peso has gained value in response to the increasing inflow of investments from foreign businesses moving their production to Mexico in order to be closer to the United States.
The Mexican Peso is the second most valued currency in Latin America in relation to the US Dollar, according to the Secretaría de Hacienda y Crédito Pùblico (SHCP), which stated this on Wednesday. The Mexican Peso appreciated by 13.8% in the first half of 2023, only behind the Colombian Peso's 16.3% growth.
The nature of the change has also surprised some because the Mexican peso reached levels of 24 pesos to the dollar in the second quarter of 2020, at the height of the Covid 19 pandemic.
Prior to the pandemic, the level was close to 18.5 pesos to the dollar.
Although the government views the incident as a political achievement, experts have also warned of the dangers to the country's two main economic engines, tourism and exports.