Overview
- BBVA’s FX Insights identifies the Mexican peso as the region’s most stable currency next year, highlighting supportive real yields, low FX volatility, Banxico credibility and solid institutions.
- Capital Economics forecasts the Colombian peso to be the region’s worst performer by end-2026, projecting a move from roughly 4,039 to 4,600 per U.S. dollar.
- The bearish COP call is tied to fragile public finances and a worsening current-account balance during an election year, which the firm says could drive a larger-than-expected depreciation.
- This outlook follows a 2025 backdrop where many Latin American currencies strengthened on a weaker U.S. dollar and renewed appetite for emerging-market assets, according to reported market analysis.
- Bloomberg-based tallies show the Paraguayan guaraní among the top Q3 performers alongside the Colombian and Mexican pesos, while weaker 2025 showings included the Uruguayan, Honduran, Chilean and Dominican pesos and the Argentine peso.