Exchange Rate Calculator

The exchange rate between the Canadian Dollar (CAD) and the Mexican Peso (MXN) has experienced notable fluctuations over the past few months. Understanding these movements requires an examination of recent trends, underlying economic factors, and potential future developments.

Recent Exchange Rate Trends

In the first quarter of 2025, the CAD/MXN exchange rate exhibited a downward trend. On January 1, 2025, the rate stood at 14.493 MXN per CAD, marking the highest point for the year. By March 14, 2025, it had declined to 13.851 MXN per CAD, the lowest rate observed during this period. The average exchange rate over these months was approximately 14.248 MXN per CAD. (exchange-rates.org)

This depreciation of the Canadian Dollar against the Mexican Peso represents a decrease of about 3.40% over the specified period. Such a trend indicates a strengthening of the Mexican Peso relative to the Canadian Dollar.

Historical Context

To contextualize the recent trends, it's beneficial to look at the exchange rate movements in previous years:

• 2024: The CAD/MXN exchange rate fluctuated between 12.8076 MXN per CAD on January 1 and 14.496 MXN per CAD on December 31. The average rate for the year was approximately 13.65 MXN per CAD. (exchangerates.org.uk)

• 2023: The exchange rate ranged from a low of 12.3102 MXN per CAD to a high of 14.407 MXN per CAD, with an average rate of 13.1343 MXN per CAD. (exchangerates.org.uk)

• 2022: The rate varied between 14.5638 MXN per CAD and 15.344 MXN per CAD in September, indicating a relatively stable period. (exchangerates.org.uk)

• 2021: The exchange rate was higher, with values such as 16.57 MXN per CAD in October. (freecurrencyrates.com)

This historical data reveals a general downward trend in the CAD/MXN exchange rate over the past few years, with the Canadian Dollar weakening against the Mexican Peso.

Economic Factors Influencing the Exchange Rate

Several economic factors have contributed to the observed trends in the CAD/MXN exchange rate:

1. Interest Rate Differentials: The monetary policies of the Bank of Canada and the Bank of Mexico significantly influence exchange rates. If the Bank of Mexico offers higher interest rates compared to the Bank of Canada, it can attract foreign capital, increasing demand for the Peso and strengthening its value against the Canadian Dollar.

2. Commodity Prices: Canada's economy is heavily reliant on commodity exports, particularly oil. Fluctuations in global oil prices can impact the Canadian Dollar's value. A decline in oil prices can lead to a weaker CAD, affecting the exchange rate with the MXN.

3. Trade Balances: The trade relationship between Canada and Mexico, as well as their respective trade balances with other countries, can influence currency values. A trade surplus in Mexico or a deficit in Canada can lead to a stronger Peso relative to the Canadian Dollar.

4. Economic Growth and Stability: Perceptions of economic stability and growth prospects in both countries affect investor confidence. If Mexico's economy shows signs of robust growth and stability, it can attract investment, bolstering the Peso.

5. Inflation Rates: Differences in inflation rates between the two countries can impact the exchange rate. Higher inflation in Canada compared to Mexico can erode the value of the Canadian Dollar relative to the Peso.

Potential Future Developments

Looking ahead, several factors could influence the CAD/MXN exchange rate:

• Monetary Policy Decisions: Future interest rate decisions by the Bank of Canada and the Bank of Mexico will be pivotal. If the Bank of Canada raises interest rates to combat inflation, it could strengthen the CAD. Conversely, if the Bank of Mexico adopts a more aggressive monetary policy, the Peso could appreciate further.

• Global Economic Conditions: The global economic environment, including commodity price trends and economic growth in major trading partners like the United States, will impact both currencies. For instance, a global economic slowdown could reduce demand for commodities, affecting Canada's export revenues and the value of the CAD.

• Trade Agreements and Policies: Any changes in trade agreements or policies affecting Canada and Mexico, such as modifications to the United States-Mexico-Canada Agreement (USMCA), could influence trade flows and, consequently, exchange rates.

• Political Stability: Political events and stability in both countries can affect investor confidence and currency values. Elections, policy changes, or geopolitical tensions can lead to volatility in the exchange rate.

Conclusion

The CAD/MXN exchange rate has shown a downward trend in recent months, reflecting a strengthening of the Mexican Peso against the Canadian Dollar. This movement is influenced by a complex interplay of factors, including interest rate differentials, commodity prices, trade balances, economic growth, and inflation rates. Monitoring these factors will be essential for anticipating future movements in the exchange rate.