Exchange Rate Calculator

The exchange rate between the Mexican Peso (MXN) and the New Taiwan Dollar (TWD) has experienced notable fluctuations over the past year. This report analyzes the historical trends, identifies key factors influencing these movements, and provides insights into potential future developments.

Historical Exchange Rate Trends

Over the past year, the MXN/TWD exchange rate has exhibited significant variability. In August 2024, the rate peaked at approximately 1.7278 TWD per MXN. However, by February 2025, it had declined to a low of around 1.5563 TWD per MXN. As of March 18, 2025, the exchange rate stood at 1.6529 TWD per MXN. (exchangerates.org.uk, forbes.com)

Factors Influencing Exchange Rate Movements

Several factors have contributed to the fluctuations in the MXN/TWD exchange rate:

1. Economic Performance: Mexico's economic growth, driven by robust manufacturing and export sectors, has bolstered the Peso. Conversely, Taiwan's economy, heavily reliant on technology exports, has faced challenges due to global supply chain disruptions.

2. Monetary Policies: The Bank of Mexico's interest rate adjustments aimed at controlling inflation have attracted foreign investment, strengthening the Peso. Meanwhile, the Central Bank of Taiwan's relatively stable monetary policy has maintained the TWD's steadiness.

3. Global Trade Dynamics: Trade agreements and disputes involving Mexico and Taiwan have influenced investor confidence and currency valuations. For instance, Mexico's participation in the United States-Mexico-Canada Agreement (USMCA) has positively impacted the Peso.

4. Commodity Prices: Mexico's status as an oil exporter means that fluctuations in global oil prices directly affect the Peso's value. Rising oil prices typically strengthen the Peso, while declines have the opposite effect.

Recent Developments and Current Status

In early 2025, the MXN/TWD exchange rate experienced a decline, reaching approximately 1.5563 TWD per MXN in February. This downturn was attributed to a combination of global economic uncertainties and a temporary dip in Mexico's export performance. However, by March 18, 2025, the rate had rebounded to 1.6529 TWD per MXN, reflecting renewed investor confidence and improved economic indicators in Mexico. (exchangerates.org.uk, forbes.com)

Future Outlook

Looking ahead, several factors are likely to influence the MXN/TWD exchange rate:

1. Economic Recovery: As global economies recover from recent downturns, both Mexico and Taiwan are expected to see growth in their export sectors, potentially stabilizing their currencies.

2. Monetary Policy Adjustments: Any changes in interest rates by the Bank of Mexico or the Central Bank of Taiwan will impact the exchange rate. Investors should monitor policy announcements closely.

3. Global Trade Relations: Developments in international trade agreements and geopolitical events will continue to play a significant role in currency valuations.

4. Commodity Market Trends: Fluctuations in oil prices will remain a critical factor for the Peso, given Mexico's reliance on oil exports.

Conclusion

The MXN/TWD exchange rate has demonstrated considerable volatility over the past year, influenced by a complex interplay of economic performance, monetary policies, global trade dynamics, and commodity prices. While recent trends indicate a strengthening of the Peso against the TWD, investors and businesses should remain vigilant, closely monitoring economic indicators and policy decisions in both countries to make informed financial decisions.