Trending

Newsletter

Mexican Central Bank Intervenes to Halt Peso’s Freefall

By: Elena Toledo - @NenaToledo - Jan 6, 2017, 11:50 am
Donald Trump's election has helped to drive the Mexican peso to historic lows (
Donald Trump’s election has helped to drive the Mexican peso to historic lows (Alto Nivel).

Español

The American dollar has once again reached a new historical high in Mexico, closing this Thursday at an astounding 22.10 pesos at Mexico’s largest banking houses.

The banking agency where the US currency was highest was BanRegio where it traded at up to 22.10 while in Bancomer the dollar was sold at 21.84 Mexican pesos. However, at Banamex, Ve por Mas, Santander and Monex the currency a day high of 21.75 Mexican pesos.

The Exchange Commission reported Thursday that the Central Bank of Mexico (Banxico) has sold dollars directly into the foreign exchange market to inject liquidity and reduce the volatility that has appeared in recent days.

In a statement, the commission made up of the secretaries of Finance and Banxico, indicated that, contrary to other discretionary interventions, currently the Banco de México is also selling US foreign currency abroad, hoping to limit speculative positions against the Mexican peso from outside the Aztec country’s borders.

According to the Exchange Commission, the Mexican peso will continue to be sensitive to the comments of US President-elect Donald Trump, so the exchange market is expected to record new record highs before January 20, when the Republican businessman will be inaugurated in Washington DC.

This Commission also indicated that “it is not discarding the possibility of intervening again on the foreign exchange market in other sessions” since this type of action “will moderate the pressure facing the Mexican peso, but will not eliminate the risks in the foreign exchange market.”

They further noted that “the Mexican peso is also negatively affected by the deterioration of economic expectations in Mexico, which continues to negatively impact consumer confidence.”

Source: Animal Politico

Elena Toledo Elena Toledo

Educator by trade, social-media apprentice, activist for a democratic Honduras, and free thinker. Follow her on Twitter @NenaToledo.

Colombia Eases Inflation in 2016 but Level Still Worrying at 5.75%

By: Julián Villabona Galarza - Jan 6, 2017, 10:57 am
Colombia has struggled to rein in inflation in recent years (

Español Colombia's National Administrative Department of Statistics (DANE), reported that inflation clocked in at 5.75% during 2016, a slight decrease compared to 2015, when the figure was 6.77%. Like many emerging market economies, Colombia has struggled to balance economic growth and inflation. The lowest annual inflation occurred in the clothing sector with 3.98%. The healthcare sector, on the other hand, saw the nation's greatest increase, at 8.14%. This was due to a rise in the prices of medicines, private insurance, supplementary payments, contraceptives, and other health items that largely increased across the board. Read More: Colombia Entrepreneurs Warn Tax Reform Generates Collateral Damage Read More: Proposed Tax Reform Would Kill Subway in Colombia Another sector that was strongly impacted was food, which increased by 7.22%, the second highest increase in Colombia. The rise in food prices was also impacted by the truck drivers' strike that occurred in the middle of the year; truck drivers, unhappy with President Santos' tax reform, have raised the possibility of spearheading another strike in 2017. With regard to Colombian cities Medellín, located in the northwest of the country, registered the highest inflation during 2016, with a rise of 6.54%. Neiva, the capital of Colombia's southwestern Huila state, registered the lowest inflation, at a mere 3.85% during the last year. In the capital, Bogota, the increase in inflation was 5.96%. googletag.cmd.push(function() { googletag.display('div-gpt-ad-1459522593195-0'); }); The final inflation statistics are within the range expected by the Bank of the Republic. However, many are concerned about the increase in prices in different sectors of the economy and that next year, in addition to having to pay these increases, Colombians will also be subjected to higher Value Added Tax (VAT) payments, which under President Juan Manuel Santos' legislation, will increase from 16% to 19%. Colombia's political and economic sectors routinely brace for year-end positioning over wages and prices; both of which have risen dramatically in the past decade as Colombia posts impressive economic growth year over year. Source: El Espectador

Weekly E-Newsletter

Get the latest from PanAm Post direct to your inbox!

We will never share your email with anyone.