In recent months, the appreciation of the Mexican peso against the U.S. dollar has garnered increasing attention in political discussions as well as everyday conversations. It has also become a focal point in academic circles. What is noteworthy is the tendency to adopt politicized positions and interpretations, often leaving unanswered the fundamental question of what determines the peso-dollar exchange rate.

This interest is heightened on days like today (June 6, 2023) when the exchange rate briefly reached $17.37 per dollar, the lowest level since April 2016. In this context, the following lines aim to shed light on a recurring question for economists and specialists in the field.