The Mexican peso closed at 19.9518 pesos per dollar in the local interbank market, while the Mexican Stock Exchange (BMV) exceeded 56,000 points for the first time in history, which was surprising because in past months it had recorded a strong outflow of capital.

In the first instance, it is good news for the Mexican currency in the sense of its appreciation; however, this strength has little or nothing to do with the local economic context.

The stability and even "strength" of the peso is not connected to anything outstanding in the Mexican economy beyond the well-known monetary and fiscal discipline, which in a nation like Mexico is almost mandatory because there would be no capital that would allow otherwise.

In the immediate term, the Mexican currency has appreciated as two things have happened that have a lot to do with the current context. On the one hand, the increase in interest rates by the Bank of Mexico and, on the other, the progress in the negotiations between Russia and Ukraine, which, as we know, is a decisive factor.

Although the environment of the reduction of interest rates is present in Mexico, in reality it is also linked to the global context with the inflationary pressures that have been registered for months. First due to the momentum of the recovery that in turn increased prices in the energy markets, later due to tensions and the start of the war between Russia and Ukraine.

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In recent hours, military actions aimed at generating a better climate in the negotiations between these two nations at war have moderated; Put another way, markets have gone from dark to light and that's called volatility.

It's possible that one of those moves will start a major winning streak; in fact, our stock market has benefited from this global volatility, or it could be another phase of this period of constant ups and downs.

In the days that have passed it is very clear what has happened, on the one hand, the Bank of Mexico (Banxico) raised the interest rate from 6.0 to 6.5%. On the other hand, Russia did not complete its invasion of Ukraine, which some specialists considered would be a matter of a few days.

In terms of interest rates, investors eager for profitability return, albeit moderately, to a market like the Mexican, which is not only next to the safest financial market in the world, which is the United States, but also the interest rate spread that was already attractive before Banxico's move is now even more so.

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It is enough to compare the yield of 6.5% of Mexico versus the fluctuation parameter of between 0.25 to 0.5% of the United States markets, which constitutes an unmissable opportunity to make money, which is what every investor is always looking for.

The same happens with the Mexican Stock Exchange (BMV), an indicator that often moves in line with the exchange rate, especially when in the first of them, that is, in the exchange parity, a strong capital movement is registered. , as has happened in recent days.

The exchange rate appreciation and the stock market highs mean less financial pressure for the Mexican economy, but this has a high foreign component, that favors the financial indicators of our country, but it is not necessarily a reflection of a favorable environment for the most relevant and that urges the country: economic growth.

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Original note