Banxico sets official peso exchange rate at 18.7072 USD

Banxico sets official peso exchange rate at 18.7072 USD

Mexico's central bank, Banxico, has set the official peso exchange rate at 18.7072 USD, following its recent policy meeting. This decision was influenced by a weak jobs market, stronger peso, and the bank's assessment of the current inflationary outlook [1].

The August 7 meeting minutes revealed that Banxico cited a slowdown in headline inflation to 3.51% in July, with the non-core component driving the decline. The bank expects inflation to converge to its 3% target by the third quarter of 2026, with the current rate set at 7.75% after a series of rate cuts [1]. However, the Mexican labor market appears to be cooling, with wage growth moderating and the slack in the economy increasing. These factors may force Banxico to postpone its forecast that inflation will reach its target by the third quarter of 2026 [1].

The central bank also weighed the possible impact of changes in global trade policies and the Mexican economy's low level of dynamism. While some members noted signs of stabilizing core inflation, others expressed concern about the balance of risks to inflation being biased to the upside, with expectations deteriorating [1].

The USD/MXN exchange rate rose to 18.7158 on September 2, 2025, up 0.35% from the previous session. Over the past month, the Mexican Peso has strengthened 0.89%, and is up by 5.47% over the last 12 months [2].

References:
[1] https://www.ainvest.com/news/banxico-maintains-inflation-outlook-policy-meeting-2508/
[2] https://tradingeconomics.com/mexico/currency