Mexico Hits Historic FDI, Peso Strengthens: Finance Week

This week in finance news, the Mexican peso reached a record high under President Sheinbaum, driven by a weakening US dollar. Mexico also set a historic FDI record in 1Q25 with US$21.3 billion, despite concerns over a 0.4% economic contraction in March. Inflation climbed to 4.22%, surpassing Banxico’s target, while Nu Mexico advanced financial inclusion through a nationwide cash deposit partnership with OXXO.

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Peso Strengthens 2.3%, Hits Record Under Sheinbaum as USD Weakens

The Mexican peso closed last week at its strongest level since President Claudia Sheinbaum took office, appreciating 2.30% amid a weakening US dollar driven by ongoing trade tensions between the United States and China.

Nu Mexico Partners with OXXO for Cash Deposits Nationwide

Nu Mexico and OXXO have launched a new cash deposit service available at OXXO stores nationwide, expanding a partnership first announced earlier this year. The new feature allows more than 11 million Nu customers to deposit funds at over 23,000 OXXO stores across Mexico using a deposit code.

Mexico Sets 1Q25 FDI Record at US$21.3 Billion

Mexico received US$21.3 billion in foreign direct investment (FDI) during the first quarter of 2025, setting a record high, according to figures released by the Ministry of Economy (SE). This total represents a 5.4% increase compared to the same period in 2024. While the government did not publish a full breakdown of FDI components, it highlighted a 165% surge in new investments, which reached US$1.59 billion, compared to US$599 million in the first quarter of 2024.

Mexico’s March 0.4% Economic Dip Raises Growth Concerns

Mexico’s economic activity contracted by 0.4% in March, raising concerns about the country’s short-term growth prospects, according to the National Institute of Statistics and Geography (INEGI). On an annual basis, economic activity fell by 0.1%, the first year-over-year contraction since December 2023, when it declined by 0.7%.

Mexico Inflation Climbs to 4.22%, Away from Banxico Target

Mexico’s consumer inflation rose to 4.22% in the first half of May, moving further away from Mexico’s Central Bank’s (Banxico) official target, according to data released by the National Institute of Statistics and Geography (INEGI). This marks the highest level since mid-December 2024, when inflation stood at 4.44%. Banxico’s inflation target is 3%, with a tolerance range of plus or minus one percentage point.