In interview with Mario Maldonado for the program Bitácora de Negocios of Radio El Heraldo broadcast by El Heraldo Media Group, the president of the National Institute of Public Administration (INAP) Luis Miguel Martínez Anzures, spoke about behavior of the exchange rate in the face of the constant fall in the exchange rate price of the dollar, which is expected, could lower until registration at 4 p.m. pesos per unit.
The official said that this approach is made by the markets Americans based on movements of the badgewhich in turn affects the performance of the Mexican currency, that is why he explained three points password to better understand the Advance peso with the dollar.
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Three points to understand the behavior of the peso against the dollar
- The first measures of the Bank of Mexico to keep the interest rate index unchanged depending on the behavior of the national economy.
- The drop in inflation in the United States is the product of the good performance of the international market and our proximity to them, because in this basket of devalued currencies we also find the Australian dollar, the Brazilian real and even the Colombian peso.
- The fervent confidence of domestic and foreign investors in our economy is evidenced by the 10-year return index which exceeds that of the United States, since according to Bloomberg, that of Mexico is at 9.54 and that of the United States at 4 ,18.
In short, a strong currency is good for economy and especially on the eve of electionsduring the term of the current presidential administration.
The importance of promoting local projects
Luis Miguel Martínez Anzures, explained that to maintain a good economy in Mexico it is important:
- Respect and maintain a healthy distance from the Bank of Mexico
- Keep betting on relocation especially in the southeast and the rest of the country, as it is crucial to support these foreign investment projects for the growth of the economy.
Source: El Heraldo De Mexico
Ashley Fitzgerald is a financial whiz and a writer at Run Down Bulletin. With a passion for all things economy, she provides insightful and thought-provoking coverage of the latest economic trends and events.