Mexican Peso continues downward spiral after AMLO announcement

Mexico.- The exchange rate began with an appreciation of the dollar of 0.68 percent; At the beginning of operations on Monday, the peso-dollar parity started at 24.9065 pesos per dollar, Notimex reports.

On Friday, the exchange rate ended at 24.7380 pesos per dollar, which meant that at the opening of the session on Monday, the greenback gained 16 cents to the national currency.

El peso sigue cayendo frente a dólar, se vende hasta en 15.80 ...

According to its Banco Base exchange rate opening report, the exchange rate on Sunday afternoon in international operations reached a new all-time high of 25.7849 pesos.

He explained that the Mexican peso was placed as the second most depreciated currency in the basket of main crosses, after the Japanese yen, mainly due to the decision of the executive in Mexico not to present a plan of countercyclical measures.

Coronavirus 'infecta' al peso

The exchange rate reacted because, without fiscal policy against cyclical, there is no way to lessen the impact of the coronavirus on the economy, he said.

Under these conditions, the optimistic scenario of a decline in GDP of three percent disappears and in its place is an optimistic scenario with a decline of five percent, a central scenario of a decline of 8% and a pessimistic scenario of a decline of 10 percent, he commented.

He indicated that if the pessimistic scenario were to be fulfilled, it would be the worst drop since 1932, during the Great Depression, when Mexico’s GDP fell 14 percent.

However, he said, if the coronavirus crisis lasts longer than projected, the pessimistic scenario could be worse than estimated today.

Peso se devaluó por que el dólar se fortaleció en el mercado ...

The Peso crashes after AMLO announces economic strategy

After the announcement about the economic measures this Sunday by President López Obrador, at the beginning of its operations this Monday the dollar registers a sale price of up to 25.35 pesos in banks. 

For its part, the interbank exchange rate stands at 25.19 pesos per dollar, with a loss of 0.92 percent; however, at dawn, the peso sank to a new record low of 25.78 units per dollar.

While banks like Citibanamex and Banorte sell the dollar for 25.35 pesos, BBVA México does it for 25.28 pesos. 

The Mexican peso loses and hits a new record low in the face of a weakening in the price of oil and after President Andrés Manuel López Obrador presented an economic plan to deal with the coronavirus, which disappointed investors.

The President announced that he will use a Budget Income Stabilization Fund, as well as various trusts to boost the weak economy, and reiterated that his government will give priority to the poorest and most vulnerable in the face of the situation unleashed by the new coronavirus.

El peso mexicano se hunde y se sitúa por encima de los 21 por dólar

For its part, Banco Base stressed that the depreciation of the peso responds to the decision “not to present a plan for countercyclical measures, which includes support for companies such as tax deferral, and the absence of measures to prevent job losses in the face of the coronavirus crisis, which will probably lead to a massive loss of jobs and a prolonged drop in consumption. “

The euro is sold at the window for a maximum of 27.36 pesos and is purchased for up to 26.90 pesos. For its part, the pound sterling is offered at 30.85 pesos and is purchased at 30.63 pesos.

Source: notimex,

The Mazatlan Post