The dollar in the morning of Thursday, September 5, 2024 was almost $20 pesos per unit at exchange shops in Tijuana, a number that a few months ago seemed distant. During the peak of the "Superpeso", the Mexican currency was reaching $16.50 pesos per dollar, but a series of economic and political factors have caused it to depreciate.

Visiting several exchange shops in Bulevar Agua Caliente, one of Tijuana’s busiest areas, close to the US Port of Entry, prices were ranging between $19.00 and $19.90 pesos per dollar. These prices can vary depending on the location, and the same thing is happening in banks. For example, some financial institutions such as Bank of America is selling the dollar at $21.23, while the Bank of Mexico is selling it at $19.72.

What is causing the dollar to increase?

There are several factors that have influenced the peso depreciation against the dollar.

1. Political transition in Mexico: As the new administration is setting in, economic uncertainty has created fluctuation in the exchange rate, something common that happens during these periods.

2. Elections in the United States: The American electoral landscape is also influencing economic stability. In November, voters will decide if Donald Trumps becomes president again, which adds uncertainty to markets.

3. Approval of Judicial Reform in Mexico: One of the most relevant factors is the lack of trust among foreign investors due to the approval of the controversial Judicial Reform in Mexico. This reform has caused concern due to the impact it will have in judicial and economic security in the country.

This could interest you: Ken Salazar warns about consequences in relation with US due to Judicial Reform

Diplomatic tensions with the United States: Ken Salazar in disagreement

Besides internal factors, the relation between Mexico and the United States has been affected by the Judicial Reform. The US ambassador in Mexico, Ken Salazar, spoke about his concern about the negative effects this reform could have in bilateral relations. Salazar underscored the importance of being careful when changing the Judicial Branch to prevent tension between both countries.

As a response, President Andrés Manuel López Obrador decided to "pause" interactions with the ambassador, though Salazar said that cooperation between both countries is still active. Diplomatic tensions and political uncertainty have caused the peso to weaken in the last few days.

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