Donald Trump’s threats to dump the North American Free Trade Agreement (NAFTA) agreement with Mexico and Canada, and to tax money sent home by migrants to pay for the controversial wall on the southern border, have made the peso particularly vulnerable to events in the U.S. presidential race.
As Trump strode toward victory, the peso plunged 13 percent in its biggest fall since the Tequila Crisis devaluation 22 years ago, before paring losses to trade down 8.7 percent at 19.91 per dollar. Still, officials held back from taking action to support the peso despite it hitting lifetime lows overnight.
Still, President Enrique Peña Nieto said he called to congratulate Trump, and had agreed to meet the New Yorker during the transition phase to discuss joint cooperation, which he hopes would strengthen the competitiveness of North America.
Welcoming Trump’s victory speech pledge to seek “common ground” and partnership with other countries, Peña Nieto said in a televised statement that Mexico shared the same vision.
“Dialogue to make agreements is still the best route for Mexico, and my government will seek opportunities that benefit both nations in this new phase of bilateral relations,” he said.
Gabriel Casillas, an economist at Banorte, predicted Trump’s victory will shave 0.3 percentage point from 2016 economic growth, and said the peso could suffer for months as the market tries to figure out what Trump could do in office.
Click here for full article on Reuters
more recommended stories
Trump calls Migrant Caravan a ‘Big Con’
After a brief respite from attacking.
Online resources that you can use to learn about living in Mexico
Puerto Vallarta, Jalisco, Mexico – So you’ve.
Large number of companies in Mexico have become LGBT-inclusive
The economy of the future is.
Mexico’s industrial activity grows 1 pct in September
MEXICO CITY, Nov. 9 (Xinhua) —.
NFL cancels Mexico City Chiefs-Rams game
The NFL has decided to move.
Through Facebook and WhatsApp, Mexican citizens from Tijuana have sparked hate against Central Americans
Through social networks such as WhatsApp.
AMLO’s security plan: Will it really bring the murder rate down?
On November 14th Mr López Obrador,.
Mexican officials quitting top jobs with AMLO set to take office in two weeks
According to Bloomberg, key Mexico officials.
“El Chapo’s” trial shows that not all is well in Mexican law enforcement …
According to THE ECONOMIST, CHIEF AMONG.
It’s official: Mexico will hold “referendum’ on 8 billion USD Maya Train Project
Mexico’s president-elect Andres Manuel Lopez Obrador.