In the middle of 2023, the MXN It is the second best performing major currency after the COP, with a spot return of 14.0% and a total return of 21% against the COP. USD. The economists of Societe General they analyze the perspectives of the peso.
Rate cuts will begin in the first quarter of 2024
We maintain a constructive view of the peso in relation to forward contracts and expect it to trade within the 16.40-18.11 range in the coming quarters.
Political developments will be key for the peso ahead of the presidential elections in June 2024.
In its last June meeting of the Monetary Policy Committee, Banxico kept the monetary policy rate unchanged at 11.25% and promised to keep rates at current levels for “an extended period.” In our opinion, this means status quo until the end of the year. We expect rate cuts to start in the first quarter of 2024.
Source: Fx Street
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