USD/MXN (United States Dollar vs Mexican Peso)
USD/MXN is actively traded on Forex. This currency pair is gaining more popularity among traders since the Mexican peso became freely convertible against the other currencies on the market in 2008.
To date, Mexico is one of the most developed countries in Latin America, taking the leading position among them in terms of per capita income. The Mexican economy is mainly represented by the private sector as in 1980s there was a mass privatization program aimed at fighting against the crisis. Thus, the majority of Mexican enterprises are owned by foreign companies.
Mexico is a member of NAFTA - the North American Free Trade Agreement. For this reason, the country has an active trade with its neighbors - the United States and Canad - which makes up the largest part of the country's income.
Mexico is the major exporter of oil in its region. Currently, most of the country's revenues are generates by oil sector. However, the main source of income for Mexico is the service sector.
Although Mexico has huge oil and gas reserves, its natural hydrocarbons are strongly depleted. The Mexican government has to reduce the volumes of extracted oil and natural gas to avoid new problems in the economy. According to forecasts, the country will soon be forced to import oil from abroad to meet the needs of its economy. All these circumstances have a significant impact on the Mexican national currency which is largely dependent on world oil prices. In addition, the Mexican peso exchange rate hinges on international ranking of the country which is calculated by the leading rating agencies.
