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Peso Surges Into Year-End as Argentina Launches Inflation-Indexed FX Bands

A softer dollar alongside carry trades is cited as driving the peso’s rally.

Overview

  • Mexico’s currency ended 2025 around 18.00 per dollar, with Banxico’s FIX at 18.0012, marking its biggest annual gain since the 1994 free float.
  • Analysts attribute the advance to a weaker greenback, expectations for Federal Reserve rate cuts in 2026, and carry-trade inflows supported by Mexico’s higher rates.
  • The BIS ranks the peso among the most traded emerging‑market currencies, with about 2.6% of daily global FX turnover in 2025.
  • Argentina begins 2026 with exchange bands that now adjust monthly to inflation with a two‑month lag, replacing the prior fixed‑pace scheme.
  • The BCRA confirmed bank opening rates for Friday, with Banco Nación selling at $1,485, while the informal ‘blue’ dollar trades near $1,530, underscoring a persistent gap with the official market.