The link between oil and the Mexican peso is weakening. This has firms like BNP Paribas SA warning the nation’s bond market could suffer, bloomberg.com reports.
While Mexico’s fortunes have long been tied to the price of oil, that relationship has eroded as some investors sell the currency to hedge against global risks, including Britain’s possible exit from the European Union, said Banorte Ixe. So even as crude has climbed 7 percent since the end of April, the peso has plummeted 8 percent.
The slumping peso prompted BNP Paribas SA to say June 17 that there’s “considerable” risk that overseas holders of longer-term government bonds called Mbonos may begin to dump the securities. They’ve already chopped their holdings of short-term debt to the lowest since 2009 and an exodus from Mbonos would be a problem for Mexico because foreigners own 42 percent of them.
“People are throwing in the towel,” said Alvaro Vivanco, the head of local markets strategy at Banco Bilbao Vizcaya Argentaria SA. “A lot of real-money foreign investors are becoming frustrated with Mbonos because of the performance of the peso.”
more recommended stories
The Mexican Caribbean received more than 16 million visitors in 2017
CANCUN. In 2017.- The State of Quintana.
The Grand Mayan Experience: world’s first “Cruise and Land” all-inclusive concept
According to Markets Insider, the Victory Cruise.
Trump – Peña Nieto White House meeting in the works
Regarding his first meeting as president.
Anti-gun rally in Southern Florida after school shooting
According to The Miami Herald, people showed.
Helicopter carrying top Mexican officials flips, kills 13 on ground
According to the Chicago Tribune, a.
Mexican Space Agency participates in outer space initiatives development
According to El Universal, this year,.
Major American automakers ask Trump to stick with NAFTA
Most automakers have production and supply.
Priest accused of sexually abusing a 12-year-old child in Mexico City
A 58-year-old priest was arrested and.
Progreso Carnival: chaotic for most visitors and residents
“In addition to suffering a number.
Exemplary Yucatecan police officer accidentally drowns in a well
MÉRIDA, Yucatán.- Pedro Celestino Martín Sansores,.