The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Superpeso develops a fear of flying


Not long ago Mexico's currency was dubbed the superpeso. One of the world's strongest performers in 2001, it seemed almost invincible, ending the year 5% stronger against the dollar than in January 2001.

This year, too, the peso continued to defy expectations of a weakening. While currency traders predicted a fall to near 11 to the US dollar in the face of a global recession, the peso remained steady at around nine.

But by the beginning of July the peso had lost some of its ability to soar. Between April and July 2, it fell by almost 10% to 9.98 to the dollar.

Analysts attribute the peso's sudden dive partly to a weakening of the dollar against the euro, as well as investor concern about a stalemate in Mexico's congress on key reforms such as that of the energy sector. The largely gas-powered electricity generation industry needs to double its capacity by 2008, energy analysts say.

But some say that the market had simply misjudged the peso's strength. "The correction was long overdue," says Miguel Palomino, currency analyst at Merrill Lynch in New York. "The peso is a good currency backed by a strong economy.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree