Tuesday, January 21, 2025

‘Super peso’ surges, closes below 16.50 against US dollar

The “super peso” rose again on Friday, starting the day trading at 16.47 pesos to the US dollar and closing at 16.46, according to Reuters. This is reported to be its strongest rate since November 2015.

On Thursday, the peso traded briefly at its strongest rate against the dollar this year (16.50) before closing at 16.54.

Despite a strengthening dollar, the peso continues to defy predictions from even the sharpest of currency experts.

Even Banxico’s rate cut [in March] failed to undermine optimism towards the currency, and the fiscal austerity measures imposed by the government have helped amid tensions with some business sectors,” Eduardo Ramos, senior market strategist for HFM Markets, told the news site Expansión.

In his Friday morning press conference, President Andrés Manuel López Obrador celebrated the peso’s strength, saying that this exchange rate is possible “because corruption has been eradicated and companies are confident about investing [in Mexico].”

The March jobs report released by the United States Department of Labor on Friday morning again confirmed that a strong dollar does not necessarily translate to a weaker peso.

According to analysts at Banco Base, the peso is expected to oscillate in a range of 16.41 to 16.67 per dollar in the short term. Meanwhile, the greenback has appreciated about 3.3% this year against a basket of major currencies, and foreign currency specialists polled by Reuters predict it will remain strong.

Presidential elections in Mexico and the United States in 2024, however, may create a more volatile environment for both currencies later in the year.

With reports from El Universal, Debate, Expansión and Reuters

12 COMMENTS

  1. Even though the political climate is complicated in the US there are certainly places you can buy a 55 plus home for less than Mexico. If I was someone considering Mexico now I’d likely weigh my options and stay in the US.
    As for Canadians I have no idea what they can do. Many can’t afford Mexico or the US.

  2. You certainly can. But I don’t want to live in North Dakota, central Kansas or Nebraska, far northeastern California, Oklahoma, or anywhere in the deep south. Cross those off and you list gets much much shorter.

    • You’re right. Florida, Texas, the Deep South. It’s extremely complicated with todays US politics. For me it is California. Malibu and Carmel my favorites.

  3. Despite the strong peso, even as a retiree with a U.S. pension, I’m staying in Mexico. I think if that maniac Trump loses there will be a civil war as his insane cult members take to the streets and destroy all semblance of democracy. Much safer here.

    • Agreed, although maga are so stupid, they’ll create a circular firing squad, and hopefully destroy each other before they do people of any level of sense. There’s no way trump wins that election, no way possible, the only fans Trump has is the media. Voters are absolutely exhausted of the chaos and will see and finally realize what a racist criminal that asshole is.

    • Sondra, my timing has worked out quit well. From 55-65 I will be in Mexico. I have 7 more years to go. At that time hopefully things settle down and my 65 plus yrs back in California. I’m enjoying my Mexico adventure but wouldn’t want to be here past 65. Currently I fly back often from Guadalajara to LA so don’t feel like I am missing too much. Best to you.

  4. In the beach areas we can already see a change. Canadians have all left to go home, which is normal, but there were 30% less of them coming down. And those that did along with many Americans, we were all going out for dinners 1-2 times a week vs 4-5 times. Nice places were only patronized by short term vacationers. Long term residents stuck to home cooking and more traditional establishments. Money will not be going to places that catered to the Ex-pats. It will be really interesting to see how things materialize over the next year if exchange rates continue this way.

    • Thanks for your thoughts T. Good information. It appears from your comments that as usual it is the average middle class person getting hurt from the peso. Which leads to my next thought. Does Mexico attract wealthy people? I’d say overall no. They come for a week or two but not interested in long term. Yes, many of us have 5000 sq ft homes but that is often a case of poor in California rich in Mexico. I don’t know any “rich” people here. You don’t leave Malibu, Beverly Hills, Carmel, Montecito if you have big money.

  5. Lately, when gringos ask me about who I think will win the election, my answer is, it’s a tough call. I like Sheinbaum but Gálvez has good ideas. I then get this blank stare….then, what are you talking about? Which I knew was coming. My answer is, I live in Mexico, my home is in Mexico, my friends are in Mexico, I buy Mexican products, I use Mexican health care, I vacation in Mexico and I love the town I live in. Therefore I am interested in Mexican politics. And surprise, surprise, both candidates are immensely more qualified than the ones in the US. Doesn’t seem strange that out of 330 million people, we can’t find two that can function as leaders. Oh well.
    It would be nice if the Mexiconewsdaily would do more to cover this coming election. The dollar/peso will be greatly affected by it. But please, please, please don’t become MSNBC, FOX or CNN.
    .

  6. There are still many places in Mexico where costs are reasonable but forget about places like Lake Chapala, PV, San Miguel and many city neighborhoods. I suspect we will see some softening in the real estate markets as at least in Chapala the resistance to higher prices for both purchase and rental has really stiffened and markets are getting flush with offerings and an increasing number of price cuts.

    We are lucky in that 15 years ago we made the decision to buy in a superb walk everywhere location in Ajijic. Free from real estate inflation the rest has been manageable.

    As for the political crap I notice the leftists here only have a big fat whine about Trump but in fairness even the terminally stupid would have a hard time celebrating the shit show of the last three years so I don’t expect to see a lot of them around town in their “Build Back Better” t shirts and hats. So whine on.

    I’m with jbarriles, Mexico is still a great place to live and we do as he/she does and also agree the politics here are superior thanks in no small measure to the electoral reforms of voter ID and in person voting that make Mexico a standout even among the 80 plus nations that have strong ballot security. You will notice even with all that “voter suppression” Mexicans turn out for elections in higher real numbers and seem to have better qualified candidates as well.

    The biggest issue remains as narco crime and corruption funded by the folks north of the border and in Europe. Maybe if they go broke they won’t buy so many drugs, we can always hope.

  7. 16.34 this morning. 12.03 for Canadian.
    Are we going to see a 15 US and 11 CAD?
    Getting interesting.

Comments are closed.

A businessman signing a letter

Sheinbaum signs ‘nearshoring decree’ to attract foreign investment

0
The new package of fiscal incentives will be available for companies investing in Mexico or spending on training and innovation.
Trump announced the tariff's implementation date on Monday night as he signed a batch of executive orders from the Oval Office.

2-week delay? Trump says 25% tariffs on Mexico and Canada to take effect Feb. 1

4
Trump issued a memo on Monday outlining his administration's plan to pursue "a global supplemental tariff," though the promised 25% tariffs on Mexican and Canadian exports have not occurred.
Mexico City's Reforma business district

KPMG: 6 in 10 Mexican firms expect to make new investments in 2025

0
Of the Mexican executives expecting to make new investments in 2025, only 34% ranked nearshoring opportunities as a priority for their company.