Mexico.- Despite the profits and the higher increases in interest rates expected for this year, specialists consulted by Citibanamex foresee the worst closing in the history of the Mexican peso.
According to the median of forecasts obtained from 34 private sector institutions consulted by the financial group, the Mexican peso will end this 2022 at 21.25 units per dollar.
If the calculation is confirmed, the currency of Mexico would be going through a 3.5% depreciation against the US pesocausing it to have the worst closing of the year on record.
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Likewise, the experts pointed out that, if the forecasts are fulfilled, the Mexican peso would be spinning three consecutive years of losses, since the country’s currency has been depreciating against the dollar since 2020, as reported by Bloomberg.
Meanwhile he French bank BNP Paribas projects that the peso ends at 19.50 units per dollar, being the most positive diagnosis, on the contrary, Monex estimates that the national currency will end the current year at 21.70 pesos for each greenback.
The downward adjustment that has been registered on the forecasts of the performance of Mexican money against that of the United States has as its main reason the performance that it has had, up to now, as well as the highest trajectory for the reference rate of the Bank of Mexico (Banxico).
Meanwhile, analysts Banorte They contemplate that, at the end of this year, the dollar is quoted at 21.30 Mexican pesos, despite the fact that a little over a week ago they calculated 21.80 Mexican units per greenback.
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“It will not be enough to avoid a gradual depreciation in the face of the current overvaluation; a more aggressive market expectation relative to ours on Banxico’s remaining hikes this year; a lower expected GDP in Mexico; and the restrictive cycle of the Fed”, Banorte experts pointed out about the decision made by Banxico to raise the interest rate from 5.5% to 6.5% so far this 2022 in order to contain the inflation.
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