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
Mauricio Vila reviews the latest details of the ‘La Plancha’ project
After managing the use of the.
Fatal accidents involving motorcyclists increase in Yucatan
Freddy Cetina Amaya, leader of the.
32-year-old patient dies from Covid in Yucatan
In Yucatan, the mandatory use of.
Yucatan is the state with the highest index of peace in all of Mexico
For having the lowest rates at.
Yucatan is present at the Tianguis Turístico 2022
Governor Mauricio Vila Dosal attended the.
Invasion and massive destruction of mangroves in Chicxulub Puerto
Inhabitants of Chicxulub Puerto ask to.
Title 42 has empowered U.S. agents to turn back over one million migrants to Mexico and other countries
For thousands of migrants who have.
Progreso Marinas report an increase of up to 30 percent in port departures
Yucatan commercial marinas reported an increase.
Environmental Impact studies for the Maya Train will be submitted for public consultation
The Environmental Impact Statement (MIA) of.
The Jurassic Trail aims to be an economic trigger for the port of Progreso
The Jurassic Trail continue with the.