# Tight monetary policy to strengthen Mexican peso

> Banxico's tighter monetary policy and a foreign-exchange hedge auction programme have strengthened the Mexican peso significantly since January 19. The US government sent Congress notice on May 18 starting a 90-day consultation period before NAFTA renegotiation can begin.

- Date: 2017-05-22 · published 2017-05-22T12:00:00.000Z
- Category: macro · region Mexico · magnitude medium
- Page: https://feedsoft.ai/events/71217-tight-monetary-policy-to-strengthen-mexican-peso
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Higher Mexican rates attract capital and support the peso, which lowers the cost of US feed imports priced in dollars. Any protectionist US demands in NAFTA talks could reverse the peso gains and disrupt Mexico's grain and meal trade.

## Read by commodity

- CORN: neutral
- USDMXN: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2024-09-30 | [Mexican Peso ticks downward in wake of Powell's remarks](https://feedsoft.ai/events/28533-mexican-peso-ticks-downward-in-wake-of-powell-s-remarks.md) | +1.0% | -0.6% |
| CORN | 2026-03-27 | [Mexican peso slides past 18 as Iran war pressures mount](https://feedsoft.ai/events/20378-mexican-peso-slides-past-18-as-iran-war-pressures-mount.md) | -2.9% | -1.9% |
| CORN | 2017-01-30 | [Mexico peso firms to year high on U.S. trade talk optimism](https://feedsoft.ai/events/73196-mexico-peso-firms-to-year-high-on-u-s-trade-talk-optimism.md) | +2.0% | +1.2% |
| CORN | 2025-02-03 | [Mexican peso rallies after touching 3-year low as tariffs delayed](https://feedsoft.ai/events/26261-mexican-peso-rallies-after-touching-3-year-low-as-tariffs-delayed.md) | +0.6% | -3.9% |
| CORN | 2017-02-22 | [‘Desperate measures’: analysts react to Mexico’s $20bn peso plan](https://feedsoft.ai/events/72714-desperate-measures-analysts-react-to-mexico-s-20bn-peso-plan.md) | -0.1% | -1.6% |

## Sources

- doi.org: https://doi.org/10.1108/oxan-db221002

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.