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Peso Ends 2025 Near 18 per Dollar as Argentina Launches Inflation-Indexed FX Bands

Argentina’s new band moves monthly with two-month‑lag inflation to create room for reserve building.

Overview

  • Mexico’s official FIX closed 2025 at 18.0012 per dollar, capping an annual appreciation of about 13.77% — the largest since the free float began in 1994.
  • Analysts attribute the peso’s 2025 strength chiefly to a weaker U.S. dollar and carry‑trade inflows, with the Dollar Index down roughly 9% for the year.
  • High liquidity kept the peso among the top‑traded emerging‑market currencies, allowing it to absorb sizable flows with limited volatility.
  • Argentina’s FX corridor now adjusts with inflation from two months prior; January uses 2.5% (November CPI) with the upper band rising gradually through the month.
  • The BCRA confirmed banks’ reference quotes for the Jan. 2 restart (Banco Nación at 1,480 pesos) and targets purchases of up to 5% of daily FX volume, as survey forecasts and futures diverge on the 2026 path.