2022 Was a Great Year for LatAm Currencies

We checked every currency's 2022 performance against the USD with available data on Google Finance, and it turns out that 6 out of the top 10 are Latin American.

A strong currency is usually good for a country since it:

Increases the purchasing power of its citizens

Makes it cheaper to buy imported goods

Attracts foreign investment

In Mexico, Foreign Direct Investment (FDI) hit an all-time high in the first 9 months of the year. Uruguay, home of the world's second strongest currency in 2022, saw an incredible 390% increase in FDI in the second quarter compared to the previous year.

The world's most-traded currencies (other than the US dollar) had a comparatively much worse year. These are the Euro (-6%), the Japanese Yen (-12%), and the Great Britain Pound Sterling (-11%). The poor performance further presented an investment opportunity for international businesses from rich countries in our region's economies.

So how did the currencies stay so strong? A robust export economy that served the world well during soaring commodity demand and prices. Also, Brazil and Mexico, for example, have lately been considered relatively safe markets to invest in that offer attractive interest rates. Latin American central banks have also been careful with printing money following the COVID pandemic, a widespread practice in prosperous economies.

We're lucky that some economic winds are blowing in our favor. As we start 2023, it's on us people to continue showing the world that we're worth their money and business and push our region forward!