Superpeso: Dollar Continues to Crush the Mexican Peso Amid Judicial Reform Concerns

The Mexican peso faced significant depreciation on Tuesday, with the retail dollar surpassing the 20 pesos ceiling, reaching 20.14 pesos for sale at CitiBanamex branches. This represents a 1.21% increase, or 24 cents above Monday’s close, marking a level not seen since December 2022.

The Mexican currency opened the day at approximately 19.60 pesos per dollar on international markets, reflecting a 1.26% depreciation or 24 cents compared to the previous day, according to Bloomberg data. The sudden drop in the peso’s value has raised concerns among analysts and market watchers.

Gabriela Siller, Director of Economic Analysis at Banco Base, attributed the peso’s depreciation to both internal and external factors. Siller noted that the initial optimism regarding a potential rate cut by the U.S. Federal Reserve had buoyed the peso. However, this optimism quickly dissipated following the approval of a controversial reform to Mexico’s Judicial Branch.

The reform, which was passed in general terms on Monday afternoon, has sparked widespread concern among economic analysts and legal experts alike. The Mexican House of Representatives is expected to discuss and potentially approve the reform when the new legislative period begins.

Siller emphasized that the proposed reform could severely compromise the independence of Mexico’s Judiciary. “The exchange rate is clearly showing an upward trend,” she noted, adding that the depreciation of the peso is largely driven by the internal risks associated with the Judicial reform.

The reform, if fully enacted, could have significant implications for Mexico’s economy and its trade relationships with the United States and Canada. Siller warned that the reform could deter new investments in the country and might even lead to a halt in the reinvestment of profits and hiring by companies already operating in Mexico.

“The potential impact of this reform on Mexico’s economy cannot be overstated,” Siller said. “It could push the Mexican economy into a recession, as investors may lose confidence in the country’s legal framework and economic stability.”

The Mexican peso’s slide is being closely monitored by both domestic and international investors, with many expressing concern over the potential long-term effects of the Judicial reform on Mexico’s economic prospects.

As the situation develops, all eyes will be on the Mexican Congress and the upcoming legislative discussions, which will play a critical role in determining the future direction of the country’s economy and its relationship with key trading partners.

The recent developments have cast a shadow over the previously optimistic outlook for the peso and the broader Mexican economy, underscoring the fragile balance between political decisions and economic stability in the region.

Further updates are expected as the legislative process unfolds and as market reactions continue to evolve in response to these critical developments.

The Mexican peso faced significant depreciation on Tuesday, with the retail dollar surpassing the 20 pesos ceiling, reaching 20.14 pesos for sale at CitiBanamex branches. This represents a 1.21% increase, or 24 cents above Monday's close, marking a level not seen since December 2022.

Follow Us On Google News | Get Our Newsletter



Trending News on PVDN

  • Where do foreigners come from and where do they live in MexicoMexico City Protest on July 5 Challenges Gentrification and Airbnb’s Impact on Housing Residents of Roma and Condesa will gather at Parque México on July 5 to protest gentrification, rising rents, and Airbnb’s effect on local housing. This Saturday, July 5, Mexico City will witness its first organized citizen protest against gentrification—a peaceful but urgent gathering taking place at 3:30 p.m. at the Lindbergh Forum in Parque México,…
  • protests3Mexico City Protests: There is a fine line between anti-gentrification and xenophobia The line between anti-gentrification and racism is clear if you choose to see it: genuine activism targets policy and practice, not nationality or ethnicity. I have lived in Mexico for two decades, and I have never witnessed the level of anti-American sentiment that exists today. All of it is tied to the buzzword "gentrification," a…
  • puerto vallarta lettersPuerto Vallarta needs a new image to create meaningful reasons for travelers to visit Business leaders at Jalisco Tourism Secretariat forums stressed the need for renewing Puerto Vallarta image and diversifying attractions to appeal to national and international markets. Local business leaders and tourism specialists agreed this week that Puerto Vallarta needs a fresh look and a broader range of attractions to compete at home and abroad. In a…
  • puerto-vallarta-police-chase-bahia-de-banderasPuerto Vallarta police chase ends in deadly collision in Bahía de Banderas A Puerto Vallarta police chase along Highway 200 ended in a deadly collision in Bahía de Banderas, leaving two people dead. A high-speed chase that began in Puerto Vallarta, Jalisco, and ended in Bahía de Banderas, Nayarit, left at least two people dead and raised new questions about police engagement and road safety in the…
  • puerto-vallarta-rainfall-hurricane-flossie-july-2025Puerto Vallarta braces for torrential rains as Hurricane Flossie gains strength Puerto Vallarta faces a high risk of flooding as Hurricane Flossie intensifies in the Pacific. Torrential rains and overwhelmed drainage systems pose major challenges for the city. Puerto Vallarta, a city wedged between the Sierra Madre mountains and the Pacific Ocean, is no stranger to dramatic weather shifts—but this summer, the skies are testing the…
  • protestProtest graffiti and smashed windows mars anti-gentrification rally in Mexico City Residents and activists joined an anti-gentrification rally in Mexico Park, but the anti-gentrification rally Mexico Park turned destructive as masked youths defaced local shops and broke windows. A rally against gentrification held yesterday in Mexico City’s Parque México drew residents from Juárez, Roma, Condesa and Hipódromo alongside local activists. Organizers billed it as the city’s…
  • mexico city real estateGentrification in Mexico City is not the reason for the high cost of housing City housing shortage, not gentrification, drives prices skyward as planning lags behind demand and foreigner influence remains minimal. High real estate costs in Mexico City stem from a deep and persistent housing shortage—exacerbated by land constraints, tangled regulations and speculative investment—rather than by the presence of foreign residents. Despite headlines blaming “gentrification,” foreign-born residents make…
  • Body with signs of crocodile attack found in Ameca River, a leg was found last monthPurple Flag Warns Beachgoers after Crocodile at Los Muertos Beach Authorities raised a purple flag after a crocodile at Los Muertos Beach was spotted swimming near shore, advising visitors to avoid entering the water until safety checks ended. Local authorities recorded a crocodile swimming in the vicinity of Los Muertos Beach, one of Puerto Vallarta’s busiest tourist spots. Lifeguards spotted the reptile in shallow water…
  • José Luis Velázquez RodríguezSEAPAL Official Reported Missing in Puerto Vallarta Authorities in Puerto Vallarta have launched a search for José Luis Velázquez Rodríguez, SEAPAL's head of transparency, who has been missing since June 30. Family and officials are urging the public to report any information. Local authorities and civil protection units have launched a search operation for José Luis Velázquez Rodríguez, head of the Transparency…
  • puerto vallarta loses three blue flag beachesPuerto Vallarta retains four Blue Flag Beaches, down from eight Puerto Vallarta will enter the 2025–2026 season with four international Blue Flag distinctions in Puerto Vallarta, even after tourism-driven environmental damage cost it half of its previous honors. The Foundation for Environmental Education (FEE) in Mexico confirmed that three resort flags will be revalidated at Marriott Puerto Vallarta Resort & Spa, The Westin Resort &…
Scroll to Top