The Ministry of Finance and Public Credit (SHCP) stated that the Mexican economy is recovering at a significant level and that the Mexican peso is the second-best performing currency in the world as of 2021. Experts stressed that the improvement in Mexico's currency also makes automotive, agri-food and manufacturing exports more expensive.
In 2022, the country's economic growth was favorable. The year’s second quarter was the best-performing quarter, with a growth of 1.2% and cumulative GDP growth of 3%. Mexico’s economic activity recovered to significant levels, mainly because tourism increased by 45% compared to 2021. In addition, exports from the automotive sector and remittances also grew.
The peso’s appreciation is also due to external factors such as the US Federal Reserve and the strengthening of oil prices, which has allowed several emerging countries to report significant gains. "The Mexican peso registered an annual appreciation of 7.7% as of January 10, which placed it in the second position of currencies with the largest gains since December 2021," said Rogelio Ramírez de la O, Mexico’s Minister of Finance.
According to BANXICO, the peso closed January 17 with an appreciation of 68%, trading around MX$18.65 on the dollar, a level not seen since 2020. Analysts said the fact that the peso closed with this amount means that there is a high probability that the exchange rate will continue to fall to a level of MX$18.52 on the dollar.
Experts stressed that although the appreciation of the peso does not limit exports, it does have an impact on the country's trade relations. "While the country benefits from the strong exchange rate that makes our exports more expensive, it is also reflecting the greater need of the US to buy Mexican goods," said Mario Correa Martínez, President of the National Economic Studies Committee of the Mexican Institute of Finance Executives (IMEF).