The Mexican peso (sign: $; code: MXN) is the currency of Mexico. Modern peso and dollar currencies have a common origin in the 15th–19th century Spanish dollar, most continuing to use its sign, "$".
Mexico’s peso started at 12.50 pesos to the US dollar in 2013 down to 13.29 pesos in 2014. Then the rates started escalating to 16.06 pesos in 2015 and reaching a new low of 18.50 pesos to a dollar in 2019.
Having worked in Latin America, the United States and Europe, his expertise in global currency markets will give dynamic insight into how manufacturers can hedge the peso devaluation in Mexico.
Twenty years ago, the Mexican peso, though significantly devalued against the dollar, was fixed and offered no opportunities to hedge against it for a greater return. With much of Mexico’s economy dependent on its nationalized petroleum industry, the peso becomes heavily dependent on oil prices. Carranza explained that with the global price of oil dropping over the last two years, México has seen the peso go from twelve pesos on the dollar to upwards of eighteen.China. Labor cost in México went from being 200% more expensive than labor cost in China, to an impressive 19.6% difference today.
Adding in transportation, logistics time and costs, manufacturing companies are finding manufacturing in México is dramatically less expensive, even with the growing gap in labor wage.