Latin America Business News
Mexico’s Peso Rising to Highest Levels in Years, While Amassing Foreign Reserves
Photo: Mexican Peso
As Mexico closed its financial markets for the Easter holiday last week, the peso reached 11.5960 per dollar, a peak it hadn’t reached since 2008. The peso is at these high levels thanks to its improving export-economy and flows of capital by foreign investment portfolios.
In addition, the Mexican central bank is holding more than $124 billion in reserves. The government is also preparing itself for a ‘more constrained U.S. monetary policy’ that would see less flow of capital from there.
Should that happen Finance Minister Ernesto Cordero said his country is prepared. The nation is counting on their strong foreign reserves and a $72 billion line of credit with the International Monetary Fund to weather the storm.