The exchange rate broke the barrier of 19 pesoscame to be sold at a minimum of 18.91 pesosto close the session at 18.94 pesos, a level that has not been observed for two years.
To janneth Quirozdeputy director of analysis of Monexthe visit of Joe Biden, President of state JoinedY Justin trudeauPrime Minister of Canada, generated good expectationswhich boosted our currency.
What supported the exchange rate was the Summit. The message that was sent was that there is a search for unity in the region, regardless of the ongoing disputes. The fact that this is sent indicates integration, given the fact that companies are looking to relocate their production from Asia, from China, and move to places closer to the centers of consumption, it shows that even Mexico could become more flexible to allow it to arrive all this investment,” he said.
He noted that “the feeling about the Mexican peso It remains positive due to an extraordinary influx of dollars into Mexico from exports, remittances, foreign direct investment, tourism, and foreign investment in government securities.”
*Source: Bloomberg and Banco de México / Graph: Jesús Sánchez.
EYE WITH INFLATION
Market players are also waiting for the data from inflation to December in state Joinedwhich will be released this Thursday, the consensus of analysts believes that it could have fallen to 6.5%, an expectation that has generated strong optimism, because given a reduction in inflation, the Federal Reserve of state Joined it could be less restrictive and adjust interest rates by a smaller magnitude.
Humberto Roadchief economist of rankia Latin Americaconsidered that if the inflation data meets market expectations, optimism will remain, otherwise, if there is a negative surprise, our currency could depreciate, “the currency is in the air,” he asserted.
TWO SIDES OF THE COIN
yesterday, the weight appreciation became trend in networks social. Although it is an issue that encourages Mexicans, There are two sides of the coin regarding its appreciation.
Quiroz explained that a weight strong help a contain the inflation: “It is cheaper for us to buy the dollar. imported things. In the end, what will happen is that they will cost less, due to the exchange effect. To buy some sneakers we would have to buy dollars, this transaction is cheaper for us, because the peso is more appreciated”.
In addition, people who buy foreign currency have a good opportunity, because the expectation is that it will not remain at these levels throughout the year, Quiroz said. On the opposite side of the coin, those who receive remittances will have less money to buy in Mexico, reducing their purchasing power.
Meanwhile, for people who are abroad, “it costs more to buy the peso, since the currency is appreciated, this hurts the people who buy our products. With regard to all foreigners who want to make a physical or portfolio investment in the country, the current currency is the peso, you have to buy pesos, that implies that you have to pay more for each peso, somehow it can slow down, to a certain extent, exports and investment”.
Peso will remain strong: Bank of America
Carlos Capistrán, Bank of America’s chief economist for Mexico and Canadaconsidered that the weight will follow being a coin strong and that it could close the year at 20.80 pesos.
The peso will continue to be one of the best currencies in the world, last year the dollar strengthened because the Fed was raising rates, now the dollar is beginning to weaken.”
The specialist held that the inflation will decreasebut it will still be above the goal of the Bank of Mexico.
*Carlos Capistrán, economist. Photo: Special.
On the other hand, he said that the North American Leaders Summitwhich took place this week, it was positive for our country and injected certainty among investors.
The analyst stressed that economy mexican could fall 0.5% this yearas a result of the recession What is expected to happen in the United States, however, Mexico will not lose its investment grade and will continue to be a magnet for investment.
In a meeting with the media, Capistran pointed out that this year a contraction is expected in the economy of state Joinedwhich could be amplified in our country.
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