Paying in dollars, earning in pesos

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Mexico Trade Corridor · Corridor guide · B. Money in the corridor

Much trade between Mexico and the US is priced in dollars, while many Mexican costs are paid in pesos. This guide shows how far the exchange rate moves, who carries the risk, and the tools firms use to manage it.

Published October 23, 2026 · Facts as of October 23, 2026 · 9 min read · Sources listed at the end · Rules as of October 23, 2026

Facts as of October 23, 2026. This page states the facts as they stood on that date. Tariffs, rules and figures may have changed since publication. Tariffs and trade policy change often, so we review these pages every month and update them.

-13.7%Change in USD/MXN in 2025, a 15.8% rise in the peso's dollar value. Federal Reserve H.10 ¹

3 of 6Years from 2020 to 2025 in which USD/MXN moved 10% or more, Federal Reserve H.10 ¹

+9.8%Rise in USD/MXN from September 4 to October 14, 2026, a weaker peso. Federal Reserve H.10 ¹

18.7005Banxico FIX rate for October 22, 2026, in pesos per US dollar ²

What is it?

Corridor sales are commonly priced in US dollars, while many Mexican costs, such as payroll, rent and local inputs, are paid in pesos. A move in the USD/MXN rate then changes the margin even when the contract price stays fixed ⁶.

Why does it matter?

The peso moves a lot. On Federal Reserve H.10 data, USD/MXN rose 23.4% in 2024 and fell 13.7% in 2025, which means the peso first weakened and then strengthened ¹. A stronger peso squeezes exporters paid in dollars. A weaker peso squeezes importers who owe dollars.

How does it work?

The invoice currency decides who carries the risk. Firms in Mexico match dollar receipts with dollar costs, hedge with forwards from banks or futures on MexDer, and settle dollar debts payable in Mexico at Banxico's FIX rate ^2,5,7.

In this guide

1. Who carries the currency risk in a corridor sale?
2. How much does the peso move against the dollar?
3. Which exchange rate settles a dollar debt in Mexico?
4. How do firms in Mexico manage the risk?
5. Where does currency risk meet the cash cycle?
6. What should traders watch next?

01Who carries the currency risk in a corridor sale?

The currency on the invoice decides who carries the foreign exchange risk. With a dollar invoice, a Mexican exporter takes the risk on its peso costs and the US buyer takes none. With a peso invoice, the US buyer takes the risk, and it may refuse ⁶.

There is no published figure for the share of corridor invoices priced in dollars. Dollar pricing is common because US buyers usually prefer it ⁶. The CFDI electronic invoice records the currency of each sale. See our guide to electronic invoices (CFDI).

Lenders carry the risk too. A dollar loan to a company that earns pesos adds a currency mismatch to the credit risk.

Compare

Who loses when the peso moves

General practice. Matching dollar costs with dollar income, a natural hedge, reduces the exposure ⁶.

Party	Income in	Costs in	Loses when the peso
Mexican exporter invoicing in dollars	US dollars	Mostly pesos	Strengthens
Mexican importer of US goods	Pesos	US dollars	Weakens
US buyer invoiced in pesos	US dollars	Pesos	Strengthens
US seller paid in pesos	Pesos	US dollars	Weakens

02How much does the peso move against the dollar?

The rate moves in large steps. On Federal Reserve H.10 data, USD/MXN changed by 10% or more over the year in three of the six years from 2020 to 2025: 2023, 2024 and 2025 ¹. A higher USD/MXN means a weaker peso.

In 2024, USD/MXN rose 27.8% from its low of 16.3250 on April 8 to 20.8557 at year end. In 2025 it fell 13.7%, to 18.0057. That fall in USD/MXN equals a 15.8% rise in the peso's dollar value ¹. In 2020, USD/MXN rose 35% in about six weeks, from 18.5700 on February 14 to 25.1320 on March 24 ¹.

Large moves also happen within the length of one payment term. USD/MXN rose 9.8% from 16.8630 on September 4, 2026 to 18.5094 on October 14, 2026 ¹. Our guide to payment terms covers how long sellers wait to be paid.

These figures are the Federal Reserve's noon buying rates in New York. Banxico's FIX rate is close but slightly different. For December 31, 2025, the FIX was 18.0012 against an H.10 rate of 18.0057 ^1,4. Yearly FIX averages listed by Mexico's congressional budget office differ from the H.10 averages by 0.0201 pesos or less in 2022 to 2024 ⁸.

Data

USD/MXN, pesos per US dollar, 2020 to 2026

A positive change means a weaker peso. Source: Federal Reserve H.10, noon buying rates in New York (FRED series DEXMXUS), to October 16, 2026 ¹. Banxico FIX rates differ slightly.

Year	Year-end rate	Change over the year	Low	High
2020	19.8920	+5.5%	18.5700 (Feb 14)	25.1320 (Mar 24)
2021	20.5140	+3.1%	19.6642 (Jan 19)	21.8530 (Nov 26)
2022	19.4960	-5.0%	19.1500 (Dec 1)	21.3960 (Mar 8)
2023	16.8998	-13.3%	16.6635 (Jul 28)	19.4210 (Jan 3)
2024	20.8557	+23.4%	16.3250 (Apr 8)	20.8557 (Dec 31)
2025	18.0057	-13.7%	17.9088 (Dec 26)	20.9441 (Apr 9)
2026 to Oct 16	18.5026 (Oct 16)	+2.8% since the 2025 close	16.8630 (Sep 4)	18.5094 (Oct 14)

Exporters pay costs in pesos and are paid in dollars. In 2025, USD/MXN fell 13.7%, a 15.8% rise in the peso's dollar value (Federal Reserve H.10).

03Which exchange rate settles a dollar debt in Mexico?

Under Mexico's Monetary Law, article 8, only the peso is legal tender in Mexico. A debt in foreign currency that is payable in Mexico is paid in pesos at the rate in force at the place and date of payment. Payments in foreign currency that arrive from abroad through Banxico or banks settle in the currency sent ³. Check the official text of the law before relying on it.

The rate used is Banxico's FIX. Banxico sets it each banking day from wholesale quotes and publishes it in the Diario Oficial de la Federación (DOF) the next banking day. A dollar debt paid on a given day uses the FIX published on the previous banking day ².

Dollars move freely. As of February 17, 2026, the US Commercial Service reported no controls on moving US dollars into or out of Mexico, so profits can be repatriated ⁹. That keeps transfer and convertibility risk low. Our guide to holding and moving US dollars in Mexico covers accounts and transfers.

1. Wholesale quotesBanxico collects wholesale market quotes for dollars against pesos each banking day ².
2. FIX setBanxico sets the FIX for settlement on the second banking day and releases it from 12:00 ².
3. DOF publicationThe FIX is published in the Diario Oficial de la Federación on the next banking day ².
4. Debt paid in pesosA dollar debt payable in Mexico is paid in pesos at the FIX published the previous banking day ^2,3.

04How do firms in Mexico manage the risk?

Banks provide most hedging. They sell forward contracts and swaps over the counter, and MexDer, Mexico's derivatives exchange, lists dollar futures ^5,7. In December 2023, Banco Base explained that firms often choose bank contracts for their flexibility and lower cash cost for margin, while MexDer offers a clearing house and easier unwinding ⁷. Expansión reports that MexDer lists a standard dollar future of US$10,000 and a Mini Dollar Future of US$1,000 aimed at individuals and SMEs ⁵.

A simple first check is the bank's own conversion rate. One vendor guide gives the example of a 0.3% margin on US$250,000 converted each month, which costs US$9,000 a year ⁶. Comparing the bank's rate with the FIX shows the margin.

Checklist

Managing peso-dollar risk

• Choose the invoice currencyAgree which side takes the risk before the price is set ⁶.
• Match dollars with dollarsPay dollar costs from dollar receipts before converting the rest.
• Compare the bank rate with the FIXA 0.3% margin on US$250,000 a month costs US$9,000 a year ⁶.
• Fix a future rateForwards from banks, or dollar futures on MexDer, lock a rate for a future date ^5,7.
• Borrow in the invoice currencyDollar finance against a dollar receivable matches the two.
• Watch the termThe longer the payment term, the longer the exposure.

Items without a citation are general practice. Hedging contracts carry costs and conditions: check them with the bank.

05Where does currency risk meet the cash cycle?

Currency risk lasts as long as cash is tied up. On open account terms, a dollar receivable is exposed from the day the price is set to the day the dollars are converted. The cash conversion cycle guide shows how to measure that period.

Finance in the invoice currency matches the receivable. Under a September 2026 agreement with the Nuevo León auto cluster, CLAUT, Nafin offers small auto suppliers a 30 basis point discount on factoring in dollars ¹⁰. Our guide to factoring in Mexico covers the market.

Importers face the reverse case. A Mexican buyer of US fuel or grain owes dollars on the due date and sells in pesos. See financing fuel imports.

Where the cash goes

A dollar sale with peso costs

1. Price set
   Quote in dollarsThe exporter fixes a dollar price. Its peso costs are still to be paid.
2. Production
   Peso costs paidPayroll, rent and local inputs are paid in pesos at the rate of the day.
3. Shipment
   Dollar invoice issuedThe CFDI records the sale in dollars. The receivable is now exposed to the rate.
4. Due date
   Dollars arriveThe buyer pays in dollars, often by wire into a dollar account.
5. Conversion
   Back to pesosDollars not needed for dollar costs are converted at the bank's rate.

Typical order for a Mexican exporter invoicing in dollars. A Mexican importer of US goods faces the reverse.

Before shipmentPre-shipment finance

Funds peso costs against a confirmed dollar order.

After invoiceFactoring or invoice discounting

Turns a dollar receivable into cash before the due date, which shortens the exposure.

Buyer may not payTrade credit insurance

Covers most of an unpaid invoice if a covered buyer fails to pay.

06What should traders watch next?

The peso reacts to trade news. USMCA stays in force with annual joint reviews, after the US declined to renew it in its current form on July 1, 2026 ¹¹. News from those reviews can move USD/MXN within a single payment term. The live list of measures is on our corridor watch page.

• Oct 22, 2026Banxico FIX at 18.7005 pesos per dollar, up from 18.6425 on October 21 ².
• Oct 14, 2026USD/MXN at 18.5094, its 2026 high to October 16 on H.10 data ¹.
• Sep 4, 2026USD/MXN at 16.8630, its 2026 low on H.10 data, the strongest peso of the year ¹.
• Sep 2026Nafin dollar factoring discount of 30 basis points for auto SMEs in Nuevo León ¹⁰.
• Jul 1, 2026USMCA moves to annual joint reviews. Review news can move the peso ¹¹.

Questions traders ask

Did the peso rise or fall against the dollar in 2025?

It rose. USD/MXN fell 13.7% in 2025, from 20.8557 to 18.0057 pesos per dollar on Federal Reserve H.10 data. That equals a 15.8% rise in the peso's dollar value.

What is the FIX exchange rate?

The FIX is Banxico's reference rate for dollar debts payable in Mexico. Banxico sets it each banking day from wholesale quotes and publishes it in the Diario Oficial de la Federación on the next banking day. A debt paid on a given day uses the FIX published on the previous banking day.

Who carries the currency risk when a Mexican exporter invoices in dollars?

The exporter does, because its payroll, rent and local inputs are paid in pesos. A stronger peso cuts its margin in pesos. The US buyer carries no currency risk on a dollar invoice.

How can a Mexican company hedge the peso?

It can match dollar receipts with dollar costs, buy forward contracts from a bank, or use dollar futures on MexDer. It should also compare its bank's conversion rate with the FIX, because a small margin adds up over a year.

Can a company move dollars into and out of Mexico freely?

As of February 17, 2026, the US Commercial Service reported no controls on moving US dollars into or out of Mexico, so profits can be repatriated.

Read next

• Corridor guidePayment terms in the corridor: open account and the alternatives
• Corridor guideHolding and moving US dollars in Mexico
• Corridor guideFactoring in Mexico: how exporters sell invoices for cash
• Corridor guideFinancing fuel imports
• Product briefRefined fuels: Mexico's largest import from the US, and why it is falling
• Product briefAuto parts: the trade that crosses the Mexico-US border in both directions
• Ossiano Trade Finance GuideHow each trade finance instrument works
• GlossaryTrade finance terms in plain English

Pricing trade in dollars and pesos between Mexico and the US? Ossiano Capital works on trade finance in this corridor.

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Sources and notes

1. Board of Governors of the Federal Reserve System, H.10 Foreign Exchange Rates, Mexico, daily noon buying rates in New York (FRED series DEXMXUS), to October 16, 2026. Year-end, change, low and high values computed from the daily series. https://fred.stlouisfed.org/series/DEXMXUS
2. Banco de México (Banxico), Tipo de cambio para solventar obligaciones denominadas en dólares (FIX), retrieved October 23, 2026. https://www.banxico.org.mx/tipcamb/tipCamMIAction.do?idioma=es
3. Ley Monetaria de los Estados Unidos Mexicanos, article 8, reform of January 20, 2009, copy hosted by Intercam. Check against the official text on diputados.gob.mx. https://www.intercam.com.mx/wp-content/uploads/2019/01/Ley_Monetaria.pdf
4. Bloomberg Línea, Dólar en México cierra 2025 en MXN$18, December 31, 2025. Banxico FIX for December 31, 2025. https://www.bloomberglinea.com/latinoamerica/mexico/dolar-en-mexico-cierra-2025-en-mxn18-mientras-el-peso-se-fortalece/
5. Expansión, mini dollar futures and the BMV plan for derivatives, January 5, 2026. https://expansion.mx/mercados/2026/01/05/mini-dolar-futuros-ipc-plan-bmv-reactivar-derivados
6. Buckingham Capital Consulting (vendor blog), How Mexican exporters can receive USD payments from US customers in 2026. https://www.buckinghamcapitalconsulting.com/post/how-mexican-exporters-can-receive-usd-payments-from-us-customers-in-2026
7. El CEO, Why companies choose the OTC market over MexDer, December 22, 2023. https://elceo.com/mercados/bmv-por-que-las-empresas-optan-por-el-mercado-otc-y-no-el-mexder/
8. Centro de Estudios de las Finanzas Públicas (CEFP), Chamber of Deputies, Indicadores, December 26, 2025. Yearly Banxico FIX averages. https://www.cefp.gob.mx/ixDOCs/2017/261-251226.pdf
9. US Commercial Service, Mexico Country Commercial Guide: Trade Financing, updated February 17, 2026. https://www.trade.gov/country-commercial-guides/mexico-trade-financing
10. Cluster Industrial, CLAUT and Nafin support finance for auto SMEs in Nuevo León, September 2026. https://clusterindustrial.com.mx/claut-y-nafin-impulsan-financiamiento-para-fortalecer-a-las-pymes-automotrices-de-nuevo-leon/
11. White & Case, USMCA 2026 joint review: United States declines to extend agreement, July 2, 2026. https://www.whitecase.com/insight-alert/usmca-2026-joint-review-united-states-declines-extend-agreement-triggering-annual

All facts on this page are as of October 23, 2026, the date of publication, and may have changed since. Rules and tariffs are as of October 23, 2026 and change often: check the corridor watch before you act.

About this guide. Prepared for Ossiano Capital. People planned, researched, wrote and checked this guide, using AI tools to help with research and checking. You are welcome to quote or reuse it: please credit Ossiano Capital and link to this page.