VOL. 19, NO. 1 / WINTER 2024 / URNER BARRY'S REPORTER • 35
Beef • Veal • Pork
Poultry • Offal
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The strength of the peso against the dollar has continued to benefit importers, who
maintain a significant advantage despite a recent rebound. Projections from the Central
Bank of Mexico, usually conservative and released in the last quarter of the year, have
indicated that the peso's value is 20.01% below expected levels. While the dollar's
performance in the latter half of the year remains uncertain, Mexican importers, for now,
are experiencing increased purchasing power due to a stronger peso.
The peso's journey through the year has been a testament to its ability to withstand the
shocks of economic shifts and policy changes. The currency experienced a significant
decline, dropping over 2% in a single day, following the Mexican central bank's decision
to scale back certain economic measures. However, the peso's recovery was swift,
showcasing its inherent strength and the quick reflexes of Mexico's financial policies.
The resilience of the peso was also evident during cultural celebrations such as the Day
of the Dead, when the U.S. Federal Reserve's decision to maintain steady interest rates
provided a supportive backdrop. The strong trade ties between the U.S. and Mexico,
particularly in the agricultural sector, are a critical component of the peso's valuation and
Mexico's economic health. The trade of bone-in hams is just one example of the many
commodities that flow across the border, reflecting the deep economic interdependence
of the two countries.
The peso's strong performance reflects Mexico's overall economic health, influenced by its
GDP growth, worldwide inflation rates, and international trade. Its important role in sectors
like agriculture, especially in trade with the U.S., shows how currency values impact global
trade in the protein markets. The peso's resilience and Mexico's growing presence in
world markets highlight its role as a symbol of Mexico's economic strength and a key
player in global economic relationships.
Article contributed by Mason Augustino | maugustino@urnerbarry.com
"Urner Barry Pork Hams for Export to Mexico 23/27
have been particularly sensitive to the shifting
exchange rates between the U.S. dollar and the peso."
©Candice Bell / Shutterstock.com