Mexico’s Peso Slides to 17.68: What Expats Need to Know
MEXICO · MONEY Key Facts The country Mexico has about 132 million people and an economy of about US$1.83 trillion in 2025 (World Bank), slightly smaller than Spain’s. It is tied to the US and Canada by the USMCA trade pact. The level The peso closed Friday at 17.6760 per US dollar (MXN 10,000 ≈ […] The post Mexico’s Peso Slides to 17.68: What Expats Need to Know appeared first on The Rio Times .
Three weeks ago, one US dollar could be exchanged for 16.87 Mexican pesos. By Friday, that exchange rate had increased to 17.68 pesos per dollar. For expats paid in dollars, this represents a slight increase in purchasing power; however, for individuals holding pesos, it translates to a 5 percent decrease in value. At the beginning of September, the peso was considered one of the strongest currencies in the region, with Banxico's foreign exchange rate (FIX) near 16.87.
The depreciation in the peso began early in the month as global investors repositioned their portfolios in response to higher interest rates. This acceleration was further fueled by the Federal Reserve's decision to raise interest rates in the United States on September 16, the first increase since 2023. The narrowing interest-rate differential between the US and Mexico, coupled with the Fed's hike, has reduced the attractiveness of holding pesos compared to dollars.
Banxico, Mexico's central bank, maintained its policy rate at 6.50 percent throughout September, leaving the carry trade dynamic weakened. Consequently, the peso has become more volatile and reliant on trade headlines rather than interest rate expectations. The recent trend has been downward for the peso, despite it now trading at a rate stronger than its 2024 levels.
The upcoming trade talks between the US and Mexico, along with Brazil's presidential elections on October 4, are expected to have a significant impact on the peso's direction. These events have the potential to cause sharp fluctuations in the exchange rate, either strengthening or weakening the peso. For expats with a large sum of money to convert, it is advisable to split the conversion over the course of the week to minimize the risk of unfavorable rate movements.
The daily guide for Sunday, September 27, provides the region-wide exchange rate table, reflecting the current market conditions.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
