The Mexican peso, the stock market and airport bonds fell sharply on Monday October 29, after the official announcement that the new international airport in Mexico City will be built in Santa Lucía and not in Texcoco, based on the public consultation convened by Andrés Manuel López Obrador, and highly criticized and rejected by Mexican entrepreneurs and businessmen.
Analysts expected a drop in the markets for the result of the consultation seen as a signal on how future decisions will be taken by the government presided by AMLO, who said “there is no need to worry”, although the business sector in Mexico think otherwise.
The peso closed at its weakest level since late June, with a loss of more than 3% against the dollar that climbed above the 20 peso mark.
In bulk, the dollar closed at 20.06 pesos, which meant a loss of 3.25% for the national currency compared to the previous official closing, according to data from the Bank of Mexico (Banxico). In the session, the spot dollar touched a maximum of 20.11 pesos at 13:09 hours after the response of businessmen to the message from López Obrador.
“The cancellation of the ongoing Texcoco project, will have serious consequences for the national economy that is already echoing in a depreciation of the Mexican currency and a fall in the stock market, we just hope that these damages are not greater,” said Juan Pablo Castañón, president of the Coordinating Council Business (Consejo Coordinador Empresarial)
In economic terms, the federal government is going to save around 100 billion pesos with this intelligent, wise decision of the citizens,” López Obrador said at a press conference on Monday October 29.
After the announcement to cancel the construction of the New Mexico International Airport (NAIM) in Texcoco, the US dollar closed the day selling for $20.36 pesos at some money exchange businesses.