The Mexican peso appreciated to its strongest level against the US dollar in more than eight years on Wednesday morning, reaching 16.52 to the greenback.
The last time the peso was stronger was in October 2015, according to a long-range foreign exchange chart on the Yahoo! Finance website.
The peso appreciated around 0.7% against the dollar to reach 16.52 on Wednesday morning after closing at 16.64 on Tuesday.
The currency has appreciated around 1.4% this week, even though the differential between the Bank of Mexico’s benchmark interest rate and that of the United States Federal Reserve narrowed last Friday as a result of a 25-basis-point interest rate cut in Mexico.
The significant difference between the two rates — now 11% in Mexico versus 5.25%-5.5% in the U.S. — has benefited the peso for a prolonged period.
Janneth Quiroz, director of economic analysis at financial group Monex, said on the X social media platform that the peso benefited on Wednesday from the publication of data that showed that “Mexico’s economic activity could remain strong in 2024.”
She noted that data showed that Mexico’s exports increased 13% in annual terms in February and unemployment fell.
The peso — which appreciated around 13% against the dollar last year — has benefited for an extended period from strong incoming flows of remittances and foreign investment.
With reports from El Financiero
We actually had a sit down about this today. For those of us already with homes and material things in Mexico it’s simply a slight adjustment to the monthly budget. One less meal out a week? One less flight per month? One less hotel per month?
For Americans considering Mexico are you better off in Florida or Texas? You can still buy places for $100k. I’m from California so those places wouldn’t work for me.
My heart really goes out to our Canadian friends getting a double whammy of a weak currency against both the US and Mexico. Where are they to go to escape? Having said that a lot of millionaires in Canada with mansions in Palm Springs.
I converted a significant chunk of money a couple of months ago from USD to MXN pesos, and then bought a special CD being offered at my Mexican bank, a 4-month one paying 11.25 percent. It matures in mid-June. I’m so glad I did it when I did. I don’t freak out as much when I see how the dollar is doing v. the peso. When it matures, I’ll likely put it into a Nu bank account that’s paying 5 percent.
I have a Canadian friend who is thinking of returning to Canada after living here for 34 years because her pension with the current conversion rate has really cut into her standard of living.
When I first started coming to Mexico years ago, it was 10:1, and when I moved here 5 1/2 years ago, 20:1. I feel better having my assets split between the USD and MXN Peso. But you know, these situations are never predictable.
Smart moving getting the 11.25%. Awesome!
With 34 yrs in Mexico hopefully your Canadian friend is able to figure out a way to stay. Going back up there to Canadian cost of living, mosquitoes and winter likely doesn’t solve much.
I have Canadian family and friends with good paying jobs that can’t afford to come to Mexico. It’s expensive for them to survive in their own expensive cities. Makes one wonder which is the “poor” country.
My advice for anyone moving from another country is to factor your budget at 12:1 pesos. If that works, you’ll be ok. Owning a home here makes the currency fluctuations easier to manage.
As an expat living in Mexico, I find the Super Peso no big deal. We bought our home here seven years ago and enjoy the cost of living in Mexico. Living in an Expat enclave that is a super popular tourist destination means you can easily overspend, or there are local alternatives to the high-priced restaurants that are essentially for tourists. For people considering buying property, the super peso is an issue as this can cause big swings in the property price. However, owning a piece of Mexico is a reality that provides many benefits, like peace of mind and a lifestyle that is simply wonderful. Yes, you will hear the horror stories of cartels and other things. Still, for those of us who have lived in many places and experienced many situations, Mexico offers a rich way of life filled with warm and welcoming people and a vibrant, young, and outgoing culture. Every place is flawed; there are issues anywhere in the world, but based on my experience, Mexico has much to offer at an affordable price with art, music, cuisine, and culture that will make you happy most days.
Good thoughts Paul. Mexico is wonderful. With your house and material things paid in cash I agree, the peso is really a non issue.
And for those of us in the Guadalajara area it is also hard to beat 30C high and 10C low this time of year. Wonderful warm days and cool nights for sleeping.
I feel this situation will only continue even after interest rates adjust in the US. This is Mexico’s “Middle-Class Revolution”. The next 20 years will have a profound effect on Mexico’s economy. I welcome this opportunity for Mexico. Will it mean retirement will cost more? Almost certainly. However, I was never a huge fan of retiring somewhere based solely on cost of living. Mexico has a rich cultural heritage, arts and sport, generally fantastic weather, is very “English friendly” and, for the most part, a warm & welcoming citizenry. As individual wealth increases, will they be as accommodating when not so dependent on US dollars? I feel for those who are accustomed to a certain lifestyle or face budgetary constraints. There’s plenty of time, and the Peso will fluctuate, but with near shoring, Mexico’s economy should only continue to get stronger. On the plus side, the Country we enjoy and in many instances love, is growing and hopefully many of it’s people will benefit and thrive. Even at 10:1, it’s a bargain! And if it comes to needing a little extra to get by, perhaps a middle class Mexican family will need a housekeeper. J/K, but the irony made me chuckle.
Excellent thoughts Norse Hombre. I agree with you about not retiring somewhere based solely on cost of living however I think for most people that’s how it starts. Tempted by the 4000 plus sq ft house and Guadalajara airport 3 hrs to Los Angeles you are willing to “take a chance on the place.” Then all the things you say about cultural heritage, arts, Música, weather, plus the low stress life, beautiful scenery and on and on keeps one here. The country starts to “grow on you”
I love your response in every way, word for word, it resembles my thoughts and feelings. Thank you
Gracias Bradford. I am very happy in the Guadalajara area. I have traveled many places in California and the western United States and this region certainly rivals that. The magical town of Tequila, Jalisco has captivated me. Sit in the gorgeous plaza for a few hours on a Saturday or Sunday and people watch. Mariachi and other bands playing throughout entertaining the happy, positive and vibrant people dressed in western wear. Plus the architecture, colorful buildings and distilleries, it’s hard to beat that place. The open roads for riding my motorcycles and beautiful views of blue agave, corn and sugarcane is absolutely wonderful. And the weather, wow!
My next journey is to rediscover Canada. I left after college to California. Starting in a couple weeks with British Columbia in the next ten years I want to see all the incredible country from west to east.
Have a great day!
This I’m going to be Honest Gentleman is very Impressive, I’ve been following the Mexican PESO quite closely and recognise the Strength in the Global Market having been Visiting a Group Meeting at Burnley Town Hall Lancashire at the Burnley Civic Trust have discussed Mexico with a Gentleman and Former Council Edward Walton along with a Former Mayor of Burnley Roger B. Frost M.B.E who I have been discussing my plan’s for Volunteer Work Guatemala in hopefully 2025 along with hopefully my visit to Mexico City to discuss potential Job Ops at your Global Company Pemex Oil
I would be keen to learn if there are any more Groups that I could join alternate someone that I could speak to in Mexico as I would like to continue to follow the PESO in the Global Economy and actually not quite sure how the PESO is against the Pound, I’ve been studying and have learnt the PESO against or should I say the Dollar, it is of interest here in the UK
Kind Regards
Christopher Shackleton
Esto, voy a ser un caballero honesto, es muy impresionante. He estado siguiendo muy de cerca el PESO mexicano y reconozco la fortaleza del mercado global después de haber visitado una reunión de grupo en el Ayuntamiento de Burnley, Lancashire, en el Burnley Civic Trust, hemos discutido sobre México. con un caballero y ex concejal Edward Walton junto con un ex alcalde de Burnley Roger B. Frost M.B.E con quien he estado discutiendo mi plan para el trabajo voluntario en Guatemala, con suerte en 2025, junto con, con suerte, mi visita a la Ciudad de México para discutir posibles oportunidades laborales en su Global. Empresa Pemex Petróleo
Me encantaría saber si hay más grupos a los que pueda unirme y alguien con quien pueda hablar en México, ya que me gustaría seguir al PESO en la economía global y, en realidad, no estoy muy seguro de cómo el PESO se opone a la Libra, he estado estudiando y he aprendido el PESO frente o debería decir el Dólar, es de interés aquí en el Reino Unido.
Atentamente
Christopher Shackleton
Doesn’t anyone here see that this is bad for Mexico and Mexicans. Mexico’s exports their #1 income source and this includes the near shoring, will be more expensive compared to other countries. The #2 income source is remittances. The people receiving remittances will also have less money. Instead of thinking what this does to you, think what this is doing to Mexicans and to the Mexican economy. Not good. As a net exporter you never want to see your currency that high.