He ‘superweight’the record appreciation of the Mexican currency, has ended amid external volatility and uncertainty created by reforms of the Government of Mexicosuch as the judiciary, with a depreciation of 16% against the dollar since the day before the election on June 2. The exchange rate closed on Tuesday at 19.71 pesos per dollar, its highest level since December 2022, according to the official figure of the Bank of Mexico (Banxico)which reported a price of 16.96 on May 31, the last day before the elections in which the ruling party’s presidential candidate won, Claudia Sheinbuam.
But last Wednesday in exchange houses and bank windows in Ciudad Juárez, on the northern border of Mexico, the dollar is already being sold to the public for over 20 pesos. This has erased the ‘superpeso’ phenomenon of 2023, when the Mexican currency closed the year at 16.96 units, a record appreciation against the dollar of almost 13%. The depreciation has occurred due to external factors such as the volatility in international marketsexplained to EFE Alejandro Sandoval Murillopresident of the Mexican Institute of Finance Executives in the Ciudad Juárez Group.
“It could be anything from multiple issues that we have already mentioned, such as wars, it could be the trade war (in the United States), it could be government reactions to the trade war, such as tariffs.”he described. But the analyst also warned of internal factors, such as the reforms promoted by the ruling party, which seek to have popular elections in the Judiciary. “Obviously, there are internal issues of public policies that are beginning to be discussed in Congress and that now with the new Congress it is very likely that they will be approved and their long-term or medium-term consequences”considered.
Border residents resent volatility Merchants on the border with the United States have suffered repercussions in both directions, both positive and negative, according to Elizabeth Villalobos, president of the National Chamber of Commerce (Canaco) in Ciudad Juárez. “The negative impact when the dollar rises, well, (is) that all the products that we regularly consume in the border area, due to the effect of the replacement cost, the price goes up.” described to EFE.
Although he stated as possible benefits “More tourism, people coming to eat in restaurants, beauty salons and consumption of other products and services, there is an increase.” Citizens who cross daily from Ciudad Juárez to the neighboring U.S. city of El Paso, Texas, reported damage, especially to their pockets. “Those of us who come to El Paso to shop are affected quite a bit, yes, it affects us. Of course, those who work there (in the United States) and spend here (in Mexico), well, that’s great, but we are a little behind with that situation.”said Sandra Rascón while waiting in line at the Paso del Norte International Bridge.
EFE
