Banxico sets official peso exchange rate at 18.6440/USD

Banxico sets official peso exchange rate at 18.6440/USD

The Mexican peso maintained a stable value around 18.65 per USD, approaching its one-year high of 18.537 reached on July 23rd [1]. This stability can be attributed to a combination of factors, including a weaker US dollar, reduced domestic flows, and a more gradual policy path set by the Banco de México (Banxico).

Remittances, a significant source of dollar supply, have decreased by approximately 5% year to date, which has reduced the structural support that bolstered the peso earlier in 2025. Concurrently, unemployment in Mexico rose to 2.8% in July from 2.7% in June, which is expected to cool consumption and narrow the room for faster monetary easing [1].

Banxico has initiated a measured easing cycle, reducing interest rates by 25 basis points to 7.75% and signaling a slow, data-dependent glide path. This reduces the attractiveness of interest rate carry trades [1]. Externally, the dollar has experienced two-way pressure this week following the upward revision of Q2 US GDP to around 3.3% and positive labor data, while high-profile US political moves have clouded the Federal Reserve's outlook, keeping the greenback subdued [1].

The official peso exchange rate set by Banxico is 18.6522/USD as of July 2nd, 2025, reflecting the current market conditions and the central bank's policy stance.

References:
[1] https://www.tradingview.com/news/te_news:481139:0-mexican-peso-steady/