2019 proved to be a challenging year for the Mexican Peso, from uncertainties with the USMCA to the first year of President Andrés Manuel López Obrador being in office and finally, to the tariffs raid by the US. All of which has contributed to the Mexican Peso experiencing its fair share of setbacks.
The Mexican Peso removed all gains from 2019 after US President Donald Trump threatened to impose tariffs on goods exported from Mexico to the United States. The Mexican Peso lost as much as 3.62% in May 2019, touching its worst level so far of that whole year before erasing some losses. Additionally, the Mexican Peso had its growth cut in last years’ forecast to 0.8%-1.8%, from 1.1%-2.1% previously, which was the fourth time its outlook was lowered.
What does this mean for the Mexican Peso in 2020? It is uncertain whether things will improve for this currency year due to the continued tensions with the US. However, President López Obrador has predicted growth this year of “at least” 3%. The most recent survey by Citi Banamex shows that economists are predicting an average rate of 6.5% for the Mexican peso by the end of this year with an exchange rate of 20.07 to the dollar.
Bloomberg has noted that the “debate among economists and strategists isn’t whether the Peso will depreciate, but how weak it will become.” The statistics shown are not the most positive for the Mexican Peso in 2020. Sign up to our economic updates today to stay up-to-date with the latest market news and influences.
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Whilst every effort is made to ensure the information published here is accurate, you should confirm the latest exchange rates with WorldFirst prior to making a decision. The information published is general in nature only and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available online.