Mexican Dollar Remains Below 20 Pesos Under Light Pressure; U.S. Tightens Remittance Controls and Debates Fed's Digital Currency

The financial and banking sector saw significant movements this Tuesday, May 6. In Mexico, the dollar-peso exchange rate remained below 20 pesos, albeit with slight upward pressure. New regulations were announced in the United States that will directly impact the flow of remittances to Mexico, and the debate over the advisability of a digital currency issued by the Federal Reserve was revived. Technological innovation remains a key driver of the transformation of banking.

The Mexican peso experienced a slight depreciation against the US dollar on Tuesday. The average exchange rate stood at 19.73 pesos per dollar. On Monday, May 5, the Bank of Mexico (Banxico) reported a closing price of 19.69 pesos per dollar. For Tuesday, May 6, the fixed exchange rate, published in the Official Gazette of the Federation (DOF), was set at 19.6365 pesos per dollar. Markets are closely monitoring the next monetary policy announcement from the U.S. Federal Reserve (Fed), which could influence currency exchange rates.

Below is a table showing the exchange rates at selected Mexican banks for the afternoon of May 6, 2025:

It is important to remember that the buying and selling price of the dollar fluctuates constantly throughout the day. Regarding banking operations, the National Banking and Securities Commission (CNBV) confirmed that banking institutions in Mexico did operate during their regular business hours on Monday, May 5, the day of the commemoration of the Battle of Puebla.

The United States government will implement a new regulation that will tighten the tracking of money transfers sent from certain zip codes along the southern border to other countries, including Mexico. The measure, which will take effect in April and last at least six months, reduces the threshold for reporting such transfers from $10,000 to just $200. The stated goal is to combat money laundering by drug cartels.

This regulation will significantly affect the vital flow of remittances to Mexico, which in 2023 represented 4.5% of the national GDP and averaged less than $400. Critics of the measure point out that it will generate greater "financial surveillance" and could complicate the delivery of financial aid to families, in addition to potentially encouraging the use of informal channels.

U.S. Treasury Secretary Scott Bessent has expressed his firm opposition to the Federal Reserve issuing its own digital currency (CBDC), arguing that such a move could be interpreted as a sign of "weakness" in the U.S. financial system. This stance reflects the caution among traditional monetary authorities regarding the potential disruption of CBDCs and the cryptoasset ecosystem, despite the growing interest in blockchain technology.

Meanwhile, innovation in digital banking and artificial intelligence (AI) continues to advance. American Banker recently recognized several notable innovations for 2025, including JPMorgan Chase's generative AI-based LLM Suite, Citi Token Services for on-chain finance, and Nubank's Financial Empowerment for Under 18s platform. In Chile, Banco Internacional also plans to boost its growth in the personal segment through new features in its mobile app and improved risk management. These examples underscore the global trend toward adopting advanced technologies to improve competitiveness and customer experience in the financial sector.

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