Summary: Comparing the Mexican Peso to Other Latin American Currencies Against the Dollar
Ever wondered why the Mexican peso always seems to pop up in business news, while other Latin American currencies like the Brazilian real or Argentine peso often make headlines for the wrong reasons? If you’re trying to figure out whether the Mexican peso is actually holding up better than its regional peers against the US dollar, you’re not alone. This article unpacks the peso’s relative strength, dives into hard numbers, and shares a few real-life stories and expert takes. I’ll also show you how to look up and compare these currencies yourself—complete with screenshots, a quirky mistake or two, and even a quick simulation of trade certification disputes (just to keep things lively).
What Problem Are We Solving?
Let’s get straight to it: You’re probably here because you want to know, in practical terms, how the Mexican peso (MXN) is doing compared to other major Latin American currencies like the Brazilian real (BRL), Chilean peso (CLP), Colombian peso (COP), and Argentine peso (ARS) against the US dollar (USD). Maybe you’re considering investing, running a business with Latin American exposure, or just curious about why the peso sometimes gets called the “super peso.”
This article will help you:
- Understand the recent trends in the peso’s performance versus the dollar.
- See how it stacks up against other top Latin American currencies.
- Get a sense of what’s driving these differences (with real numbers and sources).
- Spot some practical pitfalls and quirks if you try to track these things yourself.
Comparing Currencies: How I Actually Did It
Step One: Gathering the Data (and a Minor Mishap)
The first time I tried comparing Latin American currencies, I just googled “MXN to USD,” “BRL to USD,” etc., and jotted down the current rates. Turns out, that’s not enough—you need both the current rate and how much it’s changed over time. I ended up on XE Currency Charts and Investing.com, which let you track a currency’s movement against the dollar over any period.
For example, here’s a screenshot from XE showing the Mexican peso’s performance over the past year:
On the same sites, I pulled up charts for BRL/USD, CLP/USD, COP/USD, and ARS/USD. Already, you can see how much more volatile the Argentine peso is (and how much steadier the Mexican peso looks).
Step Two: Comparing Performance—Numbers Speak Louder
Here’s where it gets interesting. According to Reuters (July 2023), the Mexican peso actually strengthened nearly 15% against the dollar during the first half of 2023—a time when most other regional currencies were either flat or losing ground.
Here’s a quick table I made, using data from the end of 2022 to mid-2023 (rounded for clarity):
| Currency | % Change vs USD (2023 H1) | Main Drivers |
|---|---|---|
| Mexican Peso (MXN) | +15% | Nearshoring, high interest rates, remittances |
| Brazilian Real (BRL) | +7% | Commodity exports, central bank policy |
| Chilean Peso (CLP) | -3% | Copper price swings, political risk |
| Colombian Peso (COP) | +6% | Oil exports, fiscal policy |
| Argentine Peso (ARS) | -40% | Hyperinflation, capital controls |
Source: Reuters, July 2023
So, by the numbers, the Mexican peso is not only stronger, but it’s also been one of the best performing currencies in the world recently. Even the Brazilian real, which had a decent run, couldn’t keep up.
Step Three: Digging Into the “Why”
This is where I got a bit lost the first time. Why is the Mexican peso so strong? I called up an old friend who works in FX trading in Mexico City. He said, “It’s a mix of nearshoring, high central bank rates, and a huge wave of remittances. Plus, international investors use the peso for ‘carry trades’—basically borrowing in dollars and investing in pesos for the higher yield.”
I double-checked this with The Financial Times—they confirmed that nearshoring (US companies moving supply chains to Mexico) and aggressive rates from Banxico (Mexico’s central bank) are big factors. In contrast, the Argentine peso is stuck in a downward spiral due to inflation and capital controls.
Step Four: Looking at Trade Verification (An Unexpected Twist)
Something I didn’t expect: currency performance can actually affect how countries verify trade and certify origin. Here’s a quick comparison table of how “verified trade” standards differ between these countries:
| Country | Standard Name | Legal Basis | Authority |
|---|---|---|---|
| Mexico | Certified Exporter (USMCA) | USMCA, Article 5.2 | SAT, Customs |
| Brazil | Export Verification Program | Decree 660/2002 | Receita Federal |
| Chile | Certified Exporter (FTA-based) | Various FTAs | Servicio Nacional de Aduanas |
| Argentina | Declaración Jurada Anticipada de Exportación | AFIP Res. 3252/2012 | AFIP |
So, while the peso’s strength isn’t directly tied to trade verification, the underlying economic stability absolutely is. In Mexico, the robust currency has made trade flows more predictable, while in Argentina, the collapsing ARS has led to constant rule changes and more red tape.
Simulated Case: Mexico vs Argentina on Free Trade Certification
Let’s say a US company is importing auto parts from both Mexico and Argentina. For Mexican goods, thanks to USMCA and a stable peso, certification is a breeze—just submit digital docs to the SAT, and you’re done. For Argentine goods, the importer faces a different world: the currency’s volatility means prices can change overnight, and AFIP might suddenly require extra paperwork or new taxes. The US importer actually told me, “We just stopped sourcing from Argentina—it was impossible to plan ahead.”
Industry Expert Weighs In
I reached out to Dr. Laura Gómez, a trade compliance expert in Latin America. She said, “The Mexican peso’s resilience is not just about numbers. It reflects the market’s trust in Mexico’s financial and trade institutions. When you see persistent devaluations like in Argentina, the cost of trade spikes—not just in money, but in time and headaches.”
Conclusion: Is the Peso Really Stronger?
After chasing down currency charts, talking to experts, and making a few mistakes along the way, here’s what stands out: The Mexican peso is, as of 2023-2024, much stronger and more stable against the US dollar than almost any other major Latin American currency. The only real rival is the Brazilian real, but even that’s fallen behind in the latest cycle.
The reasons are not just about economic “fundamentals”—they’re also about trust, trade, and how easy (or hard) it is to do business across borders. If you’re looking for a Latin American currency that holds its value, the peso is the clear front-runner right now.
If you want to dig deeper, sites like XE, Investing.com, or even the IMF’s Data Portal are great starting points. Just don’t make my initial mistake—always check the historical trend, not just the spot rate.
My last bit of advice? Always double-check the local rules before making any big moves—what looks like a “strong” currency on paper can get tripped up by sudden regulation twists (especially in places like Argentina).
For more on official trade standards, I recommend the WTO’s official documentation on free trade agreements and the USMCA text.
Next Steps
If you’re moving money, sourcing goods, or just curious, get comfortable with the real numbers and stay alert for policy changes. The Mexican peso isn’t invincible—but right now, it’s about as strong as it gets in Latin America.