The Mexican peso was one of the few currencies that closed the third quarter of 2022 with gains and ended said period with an appreciation of 0.16% or 3.3 centstrading around 20.08 units per dollar.
In the third quarter of the year, The Mexican currency touched a maximum of 21.05 pesos per dollar on July 14 and a minimum of and a minimum of 19.75 units per greenback on September 12.
“Among the main dollar crosses, the Mexican peso was the only currency that gained ground, given a significant strengthening of the US dollar of 6.07% according to the weighted index, being the highest quarterly advance of the dollar since the fourth quarter of 2016,” said Gabriela Siller, director of economic analysis at Banco Base, in a report.
According to the specialist, the peso appreciated in the quarter due to the following factors:
- The restrictive monetary stance of the Bank of Mexico, which has raised the interest rate by 500 basis points since August 2021 to 9.25%, its highest level since the interest rate was established as an operational target in 2008.
- Mexico continues to receive foreign exchange flows through exports, remittances and foreign direct investment.
- The Mexican peso is the second most liquid currency in the basket of emerging countries, behind the Chinese yuan.
“Although internal risks persist in Mexico, mainly related to the policies of the government in turn and the consultations within the framework of the T-MEC, its speculation against the Mexican peso has been limited, added Siller Pagaza.
Throughout 2022, the Mexican peso has appreciated by 2.16% or 44.4 centspositioning itself as the third most appreciated currency after the Russian ruble and the Brazilian real.
High level Team of young journalists whose objective is to explain the most relevant business, economy and finance news. We are passionate about telling stories and believe in citizen and service journalism.