Dollar reaches lowest level against Mexican peso since 2015, AMLO expresses satisfaction

Mexican President Andrés Manuel López Obrador celebrated the Mexican peso dropping below 17 pesos per dollar, a level not seen since 2015.

The president expressed his delight during a press conference, noting that this had not happened in decades.

The appreciation of the Mexican currency has been significant, with the exchange rate at 16.99 pesos per dollar at the market’s opening on Wednesday.

The peso has experienced a historic appreciation of over 12% in the first half of the year, rebounding from the peak of the COVID-19 pandemic in the second quarter of 2020 when it exceeded 24 units per US dollar.

López Obrador highlighted the positive effects of the peso’s strength, particularly in reducing the public debt denominated in dollars.

He also compared his administration’s record to previous terms that faced strong devaluations, emphasizing the progress achieved despite external factors.

The president defended his nationalist economic policy, criticizing past privatizations that resulted in increased inequality and the concentration of wealth among a select few.

López Obrador referred to former President Carlos Salinas de Gortari as “the father of modern inequality” due to the significant rise in the number of billionaires during his term.

While López Obrador’s celebration reflects his satisfaction with the peso’s performance, economists and experts often consider multiple factors, including external influences, when assessing currency fluctuations.

However, the peso’s recent appreciation is seen as a positive development for the Mexican economy.