The dollar surpasses $19; your wallet is feeling the pressure globally and locally.

The exchange rate is skyrocketing. The dollar averages $19.07, affecting your wallet. Discover why the crisis in Iran and Mexican politics are weakening the peso.

The Mexican peso is experiencing a "perfect storm": the global crisis caused by the US attack on Iran and domestic political uncertainty have pushed the dollar's value above 19 pesos, raising concerns about the direct impact on household finances.

Mexicans' pockets are facing renewed pressure. This Sunday, June 22, the US dollar is trading at an average of 19.0789 pesos per dollar, with some banking institutions selling it for as little as 19.48 pesos. This depreciation of the peso is not an isolated event; it responds to a combination of external and internal factors that are generating volatility in the markets.

External Factor: The Crisis in the Middle East

The main catalyst for the peso's recent weakness is the military escalation between the United States and Iran. When geopolitical crises of this magnitude occur, investors around the world seek refuge in assets considered safe, and the US dollar is the main one.

This phenomenon, known as "flight to quality," causes emerging market currencies, such as the Mexican peso, to lose value against the dollar. Uncertainty over a potential large-scale conflict in the Middle East is keeping markets on edge and the peso under pressure.

Internal Factor: Nervousness about Reforms

Adding to the global tension is a local factor of uncertainty: the debate surrounding the controversial Judicial Reform. Although not explicitly mentioned in currency reports, financial analysts agree that reforms perceived as weakening the rule of law or institutional checks and balances are causing anxiety among investors.

Capital is sensitive to political stability and legal certainty. The possibility of profound structural changes in the justice system, such as the election of judges by popular vote, creates an environment of caution that can discourage investment and lead to capital outflows, further weakening the national currency.

How Does It Directly Affect You?

Exchange rate fluctuations are not just a topic for economists. A weaker peso has direct consequences for everyday life:

* Inflation: Many of the products we consume, from gasoline to electronic devices, contain imported components or are priced in dollars. A more expensive dollar can make these goods more expensive.

* Travel and Shopping Abroad: Traveling to the United States or purchasing products online from U.S. sites becomes more expensive.

* Dollar Debts: Those with debts in US currency will see an increase in the amount they owe in pesos.

* Remittances: The positive side is for families who receive remittances, since their dollars will go further when converted to pesos.

The outlook is further compounded by other economic challenges, such as Pemex's persistent debt to its suppliers, which the government is seeking to resolve, and conflicts such as the one between the Private Sector and Infonavit over illegal home seizures. Together, these factors create a complex scenario for the Mexican economy, where the value of the peso acts as a barometer of national stability.