The USD/MXN exchange rate has a rich and turbulent history that mirrors Mexico's economic journey over the past three decades.
1994: the Tequila Crisis
The December 1994 devaluation, from roughly 3.5 to over 7 pesos per dollar, triggered a full economic crisis. Mexico required a 50 billion dollar rescue package and the peso eventually settled near 6-7 per dollar.
2000s: stability and growth
The peso stabilised and strengthened through the commodities boom, trading in the 10-11 range by the mid-2000s as macro fundamentals improved.
2008: global financial crisis
The peso fell from about 10 to 15 per dollar as global markets crashed, then recovered relatively quickly as commodity prices rebounded.
2016: the election effect
The surprise US election result in November 2016 pushed the peso to then-record lows near 21-22 per dollar on fears of a renegotiated NAFTA.
2020: the pandemic
The peso hit a historic low near 25 per dollar in April 2020 as activity stopped worldwide. A rapid recovery in remittances helped stabilise it.
2022-2023: the super peso
Against expectations, the peso became one of the best-performing currencies in the world, strengthening from near 22 to under 17 per dollar on nearshoring investment and a wide real rate differential.
Lessons for today
History shows external shocks can move the peso dramatically, but Mexico's fundamentals — remittances, nearshoring and trade — provide underlying support. The peso has proven remarkably resilient.
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