Banco de México recorded a FIX exchange rate of 18.5983 Mexican pesos per U.S. dollar for November 9. On the table’s November 10 row, the publication column shows that figure while the payment column shows 18.6297. These are dated reference entries, not live trading quotes.
Why can one table show different rates?
The bank’s notes distinguish the day a FIX is determined from its later publication in the Official Gazette and its use for the specified dollar obligations payable in Mexico.
A payment figure and a newly published FIX can therefore differ. Check the column heading and reference date before choosing a comparison.
How is the FIX benchmark constructed?
Banco de México describes FIX as an average of wholesale foreign-exchange quotations for settlement two banking days later. It announces the benchmark from noon on banking days. A wholesale reference observation describes a particular measurement process, rather than every possible currency transaction.
The bank also publishes a separate closing exchange-rate measure using an intraday sampling method. Different labels can reflect different measurement windows or methods. Before comparing two peso figures, check that they represent the same series, unit and period.
For your research notes, record the full date in words and the direction of the quotation. Here, the unit is pesos for one U.S. dollar. Writing down both currencies helps avoid mistaking the number for dollars received per peso.
How does this connect to investing abroad?
Investor.gov identifies exchange-rate changes as a risk of international investing: conversion can increase or reduce the return measured in an investor’s home currency. A foreign asset’s performance and the exchange-rate effect therefore need to be considered separately.
In a simple illustration, 100 foreign-currency units are worth 200 home-currency units at a rate of two. At a rate of 1.8, the same holding is worth 180 before costs, despite its foreign-currency amount being unchanged. These are hypothetical numbers, not Mexican market observations. That illustration excludes changes in the investment’s price, as well as any fees or taxes.
Keep the benchmark’s stated purpose separate from a product’s actual conversion terms. An overseas investment can also involve fees, market risk and country-specific protections. This article explains a dated central-bank table; it does not supply a transaction quote or predict the peso’s next move.
Go to the source
For general education. Consider your circumstances and local rules before making investment decisions. Figures describe the dates stated in this article and are not live market quotes.
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