The Mexican peso continued its downward trend against the U.S. Dollar on Saturday, reaching 17.80 pesos per dollar, a level not seen in months. The decline comes amid escalating geopolitical tensions in the Middle East and their impact on global oil prices, prompting investors to seek the relative safety of the dollar.
According to the Banco de México (Banxico), the official FIX exchange rate on Saturday was 17.6770 pesos per dollar. However, rates varied across financial institutions. BBVA México offered 16.65 pesos for purchase, and 17.79 pesos for sale, while Banamex quoted 17.24 pesos for purchase and 18.04 pesos for sale. Banco Azteca listed a purchase rate of 16.25 pesos and a sale rate of 18.04 pesos. These fluctuations reflect internal adjustments and varying policies among banks.
The peso’s weakening is directly linked to the conflict between the United States and the Middle East, which has disrupted oil trade through the Strait of Ormuz – a critical waterway for approximately 20% of the world’s oil supply. This disruption has led to increased oil prices and a corresponding devaluation of the Mexican peso, as investors move towards the dollar as a safe haven asset.
The current exchange rate represents a significant increase from rates seen in recent months. October 2025 marked a period of peso strength, but the recent instability has reversed that trend. The peso’s performance is closely monitored due to its impact on remittances, international trade, and financial transactions for millions of Mexicans.
The Banxico FIX rate serves as a crucial benchmark for the Mexican financial market. Calculated as a weighted average of wholesale market transactions, it ensures transparency and stability in currency exchange. The rate is determined daily around noon and officially published in the Diario Oficial de la Federación (DOF) the following day. This official rate is used to settle dollar-denominated obligations and contracts within Mexico.
There is a distinction between the Banxico FIX rate and the market price of the dollar. The FIX rate is a reference point, while the market price fluctuates throughout the day based on supply and demand, economic expectations, and global events. Banks and exchange houses add commissions and profit margins to their rates, resulting in a higher price for consumers than the official FIX rate.
Inflation in the United States also plays a role in the peso’s valuation. Lower-than-expected U.S. Inflation figures can lead to expectations of potential interest rate cuts by the Federal Reserve, weakening the dollar and strengthening the peso. Conversely, higher inflation could prompt the Fed to raise rates, bolstering the dollar.
As of Saturday, March 6, 2026, the dollar was trading at 17.6770 Mexican pesos, according to Banxico. The situation remains fluid, and further developments in the Middle East and U.S. Economic policy will likely continue to influence the peso’s performance.