The Mexican peso accumulated a 5.61% appreciation in the first eight months of 2026, closing August at 16.9971 units per dollar compared to 18.0080 at the end of 2025. ^[1] Mexico received $5.571 billion in remittances during July 2026, marking a 3.0% annual increase and the seventh consecutive month of growth. ^[2] Banamex stated that the 'carry trade' strategy has supported the peso and noted the currency closed August near its strongest level in two years. ^[3] Banco de México (Banxico) attributed the peso's strength primarily to 'carry trade' operations exploiting interest rate differentials, global risk perception, and local risk perception. ^[4] According to Banco de México (Banxico) data, the exchange rate fell 1.87% in August, dropping from 17.3207 pesos per dollar to 16.9971 pesos per dollar. ^[5] Grupo Financiero Base calculated a monthly appreciation of 1.97% and a 5.6% annual appreciation using its market methodology. ^[6] Grupo Financiero Base warned that the peso's strength does not reflect the performance of the Mexican economy and is primarily attributed to carry trade operations exploiting interest rate differentials. ^[7] A study by the Latin American Monetary Studies Center (CEMLA) indicates that the Mexican immigrant workforce in the United States contracted between January and July 2026. ^[8] The July 2026 remittance total of $5.571 billion was the highest since 2023, surpassing the contractions recorded in the two subsequent years. ^[9] The July increase was driven by 13.1 million transactions with an average transfer value of $426, representing a 3.0% increase in both volume and average value. ^[10] Net speculative positions in Chicago favoring peso appreciation increased 13.59% between July 29 and August 25. ^[11]