Exchange Rate Calculator

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

Recent Exchange Rate Trends

In early 2025, the MXN/TWD exchange rate exhibited a range of values. On January 1, 2025, the rate was 1 MXN to 1.5721 TWD, marking the lowest point in that period. Shortly thereafter, on January 8, 2025, the rate peaked at 1 MXN to 1.6123 TWD. The average exchange rate during this timeframe was approximately 1.6013 TWD per MXN.

Moving into March 2025, the exchange rate continued to show variability. For instance, on March 10, 2025, the rate was 1 MXN to 1.6152 TWD, and by March 14, 2025, it had risen to 1 MXN to 1.6546 TWD.

Factors Influencing Exchange Rate Movements

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

1. Economic Performance: Mexico's economic indicators, such as GDP growth, inflation rates, and employment figures, directly impact the strength of the Peso. Similarly, Taiwan's economic performance influences the TWD. Divergences in economic health between the two countries can lead to exchange rate adjustments.

2. Monetary Policies: Decisions by the central banks of Mexico and Taiwan regarding interest rates and monetary policies affect investor confidence and capital flows, thereby influencing the exchange rate.

3. Trade Relations: The trade balance between Mexico and Taiwan, including export and import activities, affects demand for each other's currencies, impacting the exchange rate.

4. Global Market Sentiment: External factors, such as global economic conditions, geopolitical events, and commodity price fluctuations, can lead to shifts in investor behavior, affecting currency valuations.

Comparative Analysis with Previous Years

In 2024, the MXN/TWD exchange rate experienced significant volatility. The highest rate was recorded on April 8, 2024, at 1 MXN to 1.9662 TWD, while the lowest was on November 26, 2024, at 1 MXN to 1.5691 TWD. The average exchange rate for the year was approximately 1.7632 TWD per MXN.

Comparing this to the early months of 2025, there is a noticeable depreciation of the Peso against the TWD. The average rate in early 2025 is lower than the 2024 average, indicating a trend that may be influenced by the factors mentioned earlier.

Potential Future Developments

Looking ahead, several scenarios could unfold:

• Economic Recovery in Mexico: If Mexico's economy shows signs of robust recovery, with improved GDP growth and stable inflation, the Peso may strengthen against the TWD.

• Taiwan's Economic Performance: Should Taiwan's economy continue to perform strongly, the TWD may appreciate further, potentially leading to a weaker MXN/TWD exchange rate.

• Global Economic Conditions: Global events, such as changes in commodity prices or geopolitical tensions, could introduce volatility into the exchange rate.

• Monetary Policy Adjustments: Any changes in interest rates or monetary policies by the central banks of Mexico or Taiwan will likely impact the exchange rate dynamics.

Conclusion

The MXN/TWD exchange rate has exhibited fluctuations influenced by a combination of domestic economic performance, monetary policies, trade relations, and global market sentiments. While early 2025 shows a depreciation of the Peso against the TWD compared to 2024, future movements will depend on the interplay of the aforementioned factors. Stakeholders should monitor economic indicators and policy decisions in both countries to make informed decisions regarding currency-related activities.