The Mexican peso has taken a hit after Donald Trump’s victory in the United States presidential elections. The currency, already weakened by concerns over Trump’s campaign promises and economic policies, plummeted further on November 6th, trading down against the US dollar.
Trump’s Impact on Mexico’s Economy
Trump’s election win sent shockwaves through the Mexican economy, causing a significant depreciation of the peso against the dollar. According to financial analysis by Monex, the peso is now at its weakest point since July 2022, with a loss of 2.47% in value compared to the previous session.
Banxico Forecasts: A Mixed Bag
The Bank of Mexico (Banxico) has revised its forecasts for the economy in 2024. While inflation is expected to continue its downward trend, reaching 4.44% by the end of the year, economic growth is anticipated to be less than two percentage points. Banxico’s conservative forecast predicts that the exchange rate will close the year at around 20 pesos per unit, a significant change from its initial expectation of between 17.68 and 18.67 pesos.
Source: Infobae
