Why Is The Mexican Peso Stronger Despite The Pandemic And The Economic Fall?
MEXICO CITY — The coronavirus pandemic is bringing with it a severe, historic downfall in the world’s economy. Mexico is no exception, but its currency, the peso, has become stronger.
During the pandemic, the peso has dropped from nearly 25 units per dollar to about 22.
Juan Carlos Orozco, head financial analyst with Grupo Reforma, explainED that emerging currencies, not only the peso, tend to gain value as the U.S. economy contracts.
The expert said the pandemic hits employment and the gross domestic product everywhere, but the peso is still strong and valuable as an exchange currency.
Orozco said some domestic factors in the U.S could strengthen the dollar again, including the discovery of a coronavirus vaccine.