Is the peso punching above its weight? The results of our latest MND Peso Index™

The MND Peso Index™, a monthly purchasing power parity measure developed by Mexico News Daily, assesses whether the Mexican peso is overvalued or undervalued against the US dollar. In August 2026, the index revealed that the peso was overvalued by 2.4%, a decrease from the 2.9% overvaluation in late June. The USD:MXN exchange rate on the day the prices were collected, 17.64 pesos per dollar, was higher than the Banxico FIX rate of 17.22 pesos per dollar on the same day, indicating that the peso was overvalued.

This assessment was made based on a basket of 20 goods and services, with the MND Peso Rate coming in at 17.64 and the Banxico FIX rate at 17.22. The overvaluation assessment decreased due to changes in the implied rates for seven of the 20 items in the basket, with four items' implied rates declining and three increasing. Despite the peso's cost of living decreasing slightly in August, the overall analysis showed that the Mexican peso remained overvalued against the US dollar.