The Mexican peso has shown a historic strength in the forex markets as it has maintained its strength while other currencies have succumbed in recent weeks against the dollar, leading many analysts to call it the “super peso”.Mexico’s central bank, Banxico, has been one of the only central banks around the world applying a solid monetary policy sensible to current inflationary conditions.As of July, the USA’s inflation rate(CPI) stands at 8.6% year on year and has recently elevated the fed funds rate to “tackle” inflation to 2.5%. Eurozone’s inflation rate(CPI) stands at 8.9% and after 11 years of negative interest rates have recently elevated rates to 0.0% to supposedly tame inflation.Mexico’s inflation rate is 8.15% and Banxico has raised interest rates to a historic high of 8.5%.While the US dollar remains still king as the reserve currency for reasons I have discussed in other posts, the western financial system is fragile, indebted, bubbled up, and shows no light at the end of the tunnel with continued nonsensical policies, disguised monetary expansion and budget deficits coming out from the US and Europe. Once the time comes for the current system collapse it will be the currencies backed by commodities and with responsible central banks that will better resist. We see this already happening with Mexico’s super peso and the commodities backed Russian ruble. I’ll keep covering this topic. Stay tuned.