Super weight, at its best level

Juarez City.- The Mexican peso yesterday reached its best level of the year and since 2015, trading at up to 16.52 pesos per dollar.

The decline of the US currency is good news for some, but not for all since the appreciation of the Mexican currency helps lower inflation and increases the yield in dollars of instruments denominated in pesos.

For example, in a border like Juárez where the economy is highly dollarized, from rent and insurance to be paid in dollars, it means less debt in pesos.

However, it also represents fewer pesos for each dollar received in exports and remittances and discourages exports and the entry of foreign direct investment, specialists explain.

Last Tuesday the dollar closed the day at 16.63 pesos, so a drop of 11 cents was observed from one day to the next.

In exchange centers in the city there is also a decrease and the price is observed up to 16.90 pesos for sale.

They attribute exchange rate to confidence indicators

The appreciation of the peso is attributed to international data such as the consumer confidence indicator in the United States, which fell, as well as recent data in Mexico such as unemployment and exports, which show signs of strengthening.

Exports grew in February 13 percent at an annual rate and 4.2 percent at a monthly rate, driven by an increase in manufactured products, especially automotive products, the report indicates.

Mexico’s unemployment rate fell to 2.5 percent in February, from 2.7 percent in the same month a year ago, below market expectations of 2.8 percent. Seasonally adjusted, the unemployment rate fell to 2.6 percent, from 2.8 percent previously.

The number of unemployed decreased by 137 thousand, to 1.5 million, and the number of employed increased by 1.1 million, to 59.4 million.

This Friday, more economic data will be issued that could impact the exchange rate, such as personal consumption and inflation in the neighboring country. (Berenice Gaytán / El Diario)

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