Breaking News
0

Mexico central bank sees 'adverse environment' for peso in 2018: paper

ForexDec 27, 2017 09:40AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Tourists are reflected in a window as they look at a board displaying the exchange rate for Mexican peso and U.S. dollar at a foreign exchange bureau in Mexico City

MEXICO CITY (Reuters) - Mexico's peso faces an "adverse environment" in 2018 due to U.S. tax reforms, uncertainty over a key trade pact and elections in July, central bank governor Alejandro Diaz de Leon said in an interview published by newspaper El Financiero on Wednesday.

"We have been pointing out that the external and internal environment is adverse, but we have also highlighted that the country's macroeconomic strength is very noteworthy," Diaz de Leon said.

On Tuesday, the peso hit a nearly 10-month low despite the Banco de Mexico's move to raise the amount to be auctioned in its currency hedging program aimed at propping up the local currency.

"The objective (of raising the amount to be auctioned) has no message about the level of the exchange rate but only to provide more favorable conditions in terms of liquidity and depth," said Díaz de Leon.

Last week, the United States approved a massive $1.5 trillion tax overhaul that slashes the corporate rate and reduces taxes for many individuals as well, which has prompted fears that investment in Mexico could slow.

Uncertainty over the ongoing renegotiation of the North American Free Trade Agreement (NAFTA) is also seen as a factor weighing on the peso.

Mexico central bank sees 'adverse environment' for peso in 2018: paper
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email