**Dollar Expected to Stay in Low Volatility Phase Until 2025**
The US dollar is anticipated to remain stable with low volatility at least until November 15, 2024, according to economist Jorge Fonseca. This timeline aligns with the expected presentation of Mexico’s federal budget package for 2025. Fonseca highlights that the economic direction and the valuation of the American currency will depend significantly on the details of this forthcoming budget, which is speculated to reach up to 10 trillion pesos. Market experts will closely monitor where and how funds are allocated in the upcoming budget to gauge the Mexican economy’s trajectory.
Fonseca mentions that if the 2025 economic package remains free from significant “surprises,” the exchange rate might hold steady or possibly decrease to under 19 pesos per dollar by December. While the Mexican peso has slightly weakened more than market expectations, this has inadvertently benefited national exporters and Baja California’s export manufacturing industry, especially in regions like Tijuana and Mexicali, contributing to job creation.
He further explains that importers have faced increased costs compared to the pre-2024 election period when the exchange rate averaged around 17 pesos per dollar. Currently, the dollar’s value is above 19 pesos, with volatility reducing after the Federal Reserve cut its benchmark interest rate by 50 basis points, placing it in a 4.75% to 5% range. This policy shift has eased financial burdens for US consumers and border residents reliant on imports, easing exchange rate pressures.
Markets are giving a vote of confidence to the new government regarding the anticipated federal budget announcements for 2025, which have a deadline for presentation by November 15.
**Additional Insights: Ongoing Economic Adjustments and Projections**
In related fiscal developments, both Mexico and the United States are experiencing a mild economic slump, which experts forecast will conclude by March 2025. This economic pause has led to strategic reassessments within various sectors. Another point of interest is the ongoing discussion surrounding gentrification, where public policies need to be enacted to manage its impacts effectively.
Moreover, inflation rates reported at 5% are being scrutinized, with some economists arguing that these figures do not accurately reflect the steep rise in essential goods’ prices. Additionally, in Mexico, legal professionals are showing support for strikes within the judicial system, indicating a growing collective demand for legal reforms and improved working conditions.
Locally, shifts in security leadership aim to bolster crime prevention initiatives. Meanwhile, the tourism sector sheds light on historical curiosities like the Winchester Mansion, captivating public interest with tales of alleged curses and mysteries.
Stay informed with updates from TJGringo.com as these economic narratives continue to unfold.