Peso Faces Off Against Inflation: Can Mexico Overcome This Hurdle and Fortify Its Currency?
Inflation has become a significant challenge for Mexico, impacting the value of the peso and purchasing power. According to INEGI, inflation reached 4.66% in December 2023, exceeding Banxico's target range. This can erode consumer confidence and discourage investment, potentially weakening the peso. To combat inflation, Banxico could raise interes