Prospects are good for the peso in 2023, Barclays reports

Fiscal austerity, nearshoring and political uncertainty in other countries are all working in Mexico’s favor

Published November 3, 2022

The British bank Barclays has offered a rosy forecast for the Mexican peso, presenting an outlook that differs sharply with that put forward by Moody’s Analytics earlier this month.

The peso — one of the world’s best performing currencies in 2022 — could appreciate by over 4% against the U.S. dollar between now and the end of 2023, according to two Barclays analysts.

The analysts told a press conference Friday that the peso could trade at 19 to the U.S. dollar at the end of 2023, an appreciation of about 4.2% compared to its value of approximately 19.83 to the greenback at 11 a.m. Central Standard Time (CST) Monday.

Gabriel Casillas, Barclays’ head of Latin America Economics, and Erick Martínez, a New York-based exchange rates strategist with the bank, predicted that one U.S. dollar will buy 19.75 pesos at the end of this year, a slight appreciation for the latter currency.

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