USD/MXN: Mexican peso to strengthen along 2021 – MUFG

During 2020 the Mexican Peso weakened from 18.896 to 19.907. There are several hot topics to be monitored during 2021 but, all in all, economists at MUFG Bank expect MXN to appreciate over this new year. 

Key quotes

“For 2021, we need to monitor the vaccine rollouts in Mexico and the US, the USMCA trade deal that is unlikely to be revised, but attention will increasingly turn to the trade deal’s labor and environmental standards, and June 2021 mid-term election at Lower House and there will also be 15 out of 32 gubernatorial races in Mexico. At last, the stance of government policies needs to be followed with focus on the energy sector, and social and infrastructure plans.” 

“Considering no rupture of foreign relations and no radical government decisions, we see room for some MXN appreciation during 2021.”