Jan 1 2025: The Mexican peso weakened by nearly 23% in 2024, marking its sharpest annual decline against the US dollar since the 2008 global financial crisis. On the final trading day, the peso closed at 20.82 per dollar, capping a volatile year.
The peso initially experienced months of steady gains, reaching a nine-year high of 16.26 pesos per dollar in April. However, the currency’s fortunes shifted dramatically following June’s general election, which saw the ruling Morena-led coalition secure a sweeping victory in the presidential race and achieve significant congressional majorities.
The election result cleared the path for constitutional reforms in September, including a controversial judiciary overhaul that critics argue threatens the independence of Mexico’s courts.
Further pressure on the peso came in November with the election of US President-elect Donald Trump, whose renewed threats of tariffs against Mexico unnerved markets. The US remains Mexico’s largest trading partner, receiving approximately 80% of the country’s exports.
Mexico’s main stock index also suffered during the year, declining by nearly 14% to close at 49,513 points, marking its steepest drop since 2018.
