The 'super peso' returns: the dollar falls to 16.96, a two-year low

The Mexican peso strengthened on Thursday, August 20, and the dollar traded at around 16.96 pesos, its lowest level in two years, according to the Bank of Mexico (Banxico). The US currency slid from roughly 17.06 pesos on Wednesday to 16.9593 pesos, an appreciation of the peso against the dollar.

Each business day Banxico publishes the FIX exchange rate, the official reference used to settle dollar obligations and a gauge of how the market opens. You can check it for free on the central bank's portal.

Why it matters in Cancún: Quintana Roo's economy is closely tied to the dollar through tourism and through remittances sent by relatives in the United States. When the peso strengthens, each dollar converts into fewer pesos. For people who receive remittances, that means slightly less money in local currency: on an average remittance near 405 dollars —the typical amount Banxico reported for the first half of the year— the day-to-day difference is a few dozen pesos. For hotel, restaurant, and tourism workers who receive tips in dollars, those tips also stretch less once converted.

The flip side: a stronger peso makes imported goods, electronics, online purchases from foreign stores, and trips abroad cheaper, because fewer pesos are needed to buy dollars.

What to do with your money:

• Before exchanging dollars, compare your bank's counter, currency exchange houses, and apps: the retail rate is almost always different —and less favorable— than Banxico's FIX.
• If you are cashing a remittance, look not only at the fee but at the exchange rate offered; sometimes a low fee hides a poor rate.
• Do not make big decisions based on a single day's move: the exchange rate rises and falls constantly. Check Banxico's official reference before handling large amounts.