Living in Mexico just got more interesting, especially for those with US dollars in their pockets. The recent significant drop in the Mexican peso has sparked questions and concerns among expats and investors alike. Here at Entrepreneur Expat, we delve into the implications of this currency shift and what it means for individuals considering Mexico as their new home or investment destination.

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Understanding the Mexican Peso Drop

Last week, the Mexican peso experienced a notable decline, reaching a seven-week low against the US dollar. According to Reuters, this drop amounted to a 4.29% decrease, with the peso trading at 17.75 to the dollar. However, recent data suggests it has surged even further, hovering around 18.4 pesos to the US dollar.

Factors Behind the Decline

The primary catalyst for the peso’s decline stems from Mexico’s recent elections, resulting in Claudia Sheinbaum’s election from the Morena Party. Concerns among conservatives about Mexico’s potential shift away from market-friendly policies have contributed to this currency fluctuation.

The Peso’s Historical Performance

Despite this recent setback, it’s essential to contextualize the peso’s performance within a broader historical context. Dubbed the “super peso” by some, Mexico’s currency has exhibited remarkable strength against the US dollar in recent years, outperforming other currencies.

Driving Forces of Economic Growth

Several factors have bolstered Mexico’s economy, contributing to the peso’s resilience. The trend of nearshoring, with manufacturing returning to Mexico from abroad, has created a surge in job opportunities. Additionally, Mexico’s proactive approach to international trade diversification, including partnerships with China, has fostered economic growth and stability.

Central Bank’s Role in Strengthening the Peso

Mexico’s central bank’s decisive actions, such as raising interest rates, have attracted foreign investment, further buoying the peso. High-yield savings accounts offering up to 14% annual percentage rates have incentivized capital inflows, amplifying the peso’s strength.

Remittances and Foreign Influx

The influx of remittances from the US, coupled with an increasing number of foreigners relocating to Mexico, has bolstered the peso’s value. These factors, combined with Mexico’s commitment to fostering global economic partnerships, indicate a promising trajectory for the currency’s strength.

Seizing Opportunities Amidst Uncertainty

While short-term fluctuations may occur, the long-term outlook for the Mexican peso remains positive. Expats and investors with US dollars stand to benefit from the current favorable exchange rates, whether for travel, investment, or living expenses in Mexico.


As Mexico undergoes economic and political transitions, the resilience of its currency reflects underlying strengths in its economy and global partnerships. For expats and investors considering Mexico, now presents an opportune moment to leverage the peso’s temporary dip and explore the myriad opportunities this vibrant country offers.

If you found this information valuable, don’t forget to give this article a thumbs up and share it with fellow expats and investors. Join the conversation in the comments section below: Are you planning to invest in pesos? How do you perceive the long-term trajectory of the Mexican peso? And if you’re considering streamlining your business operations for a seamless transition to Mexico, check out our free resources for actionable insights.

Stay tuned for more insights and updates from Entrepreneur Expat, where we empower expats and investors to thrive in their global pursuits.

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