Mexican Peso Faces Steepest Decline Since 2008

The Mexican peso concluded 2024 with a significant depreciation against the US dollar, marking its steepest annual decline since the 2008 financial crisis. Closing at approximately 20.82 pesos per dollar, this reflects a depreciation of nearly 23% from the previous year. The peso's volatile performance was influenced by the election of a leftist coalition in Mexico and the re-election of Donald Trump in the US, who has threatened tariffs on Mexican exports. Additional factors contributing to the peso's decline include expectations of further interest rate cuts by the Bank of Mexico in 2025 and low liquidity during the holiday season. Concerns over the potential impact of Trump's policies on Mexico's economy have further exacerbated the peso's depreciation. Mexico's main stock index also suffered, shedding nearly 14% over the year.