Pros and cons of the ‘superpeso’: A perspective from our CEO

Published June 10, 2023

The recent appreciation of the Mexican peso against the US dollar has been a topic of much debate and discussion – even distress! – for anyone living in Mexico.

The “superpeso”, which reached a new 7-year high against the dollar this week, does make daily purchases bought using foreign currency more expensive. From an individual expat’s perspective, it seems the recent peso appreciation is not good. But perhaps a bit of context and history is important here.

The first time I came to Mexico in early 1996, the peso to US dollar exchange rate was 3 to 1. Just ten years ago, the exchange rate was 12 to 1. Even with the recent appreciation, the peso is still relatively much weaker than it has been when looked at from a longer time perspective.

How does this strengthening currency affect Mexican individuals and businesses? What about multinationals doing business in Mexico? And the expat population? I give a general overview and my perspective below.

Read more […]