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Mexican Peso, Q1’s Best Performing Currency against the US Dollar

By: Elena Toledo - @NenaToledo - Apr 3, 2017, 3:23 pm
peso mexicano
New monetary policies, in addition to Donald Trump’s moderate discourse, have been key factors in the Mexican peso’s recovery (Flickr).

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The Mexican peso has made history in the first quarter of 2017, gaining 9.27% against the dollar, from 20.64 pesos to 18.72, making it the best quarter ever since December 1994 when the Mexican market changed to free floating.

The best month for the Mexican peso was March, when the currency gained 6.81% on the dollar, which was the best month on record since April 1995 when it gained 12.52%, when it went from 6.79 to 5.94 pesos to the dollar.

The Mexican peso has recovered after a strong depreciation that led it to lose 19.92% in 2016, thus having “its worst year since the financial and economic crisis of 2008,” according to El Economista.

The monetary policy implemented by the Central Bank of Mexico (Banxico) has helped by the Mexican peso recover, since this institution has increased its interest rate twice, currently standing at 6.50%.

 

“By 2017, two elements allow us to conclude that Banxico will keep raising the interest rate to a level of 7.25%: the first is an increase in inflation (5.4% versus 3.36% in 2016) and the second is the disparity of the monetary policy between Mexico and the United States Federal Reserve which could increase the rate on two additional occasions this year), ” according to the the details provided by the organization Ve por Más (Go Get More) in a public statement.

In addition to Banxico’s actions, President Donald Trump’s toned down rhetoric, has aided the Mexican peso’s appreciation, added to the fact that Trump’s defeat in the wake of Congress’s Obamacare reform vote, accentuated the dollar’s depreciation.

Trump has talked tough regarding Mexico on trade and immigration policies, frequently using free trade agreements such as NAFTA as a punching bag on the campaign trail. However, recently it appears that his policy proposal involves reforming the controversial trade agreement, rather than withdrawing from it.

Source: El Economista

Elena Toledo Elena Toledo

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

Venezuela’s Ally Bolivia Cancels OAS Meeting on Maduro Coup

By: Sabrina Martín - @SabrinaMartinR - Apr 3, 2017, 3:09 pm
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Español The meeting of the Permanent Council (CP) of the OAS scheduled for Monday was suspended due to the Bolivian delegation's intervention, which was responsible for presiding over the meeting. Until last week, the CP was headed by Belize. The presidency is exercised successively by the representatives in the alphabetical order of the names in Spanish of their respective countries and the vice-presidency, in identical form, following the inverse alphabetical order. They exercise their functions for a period of three months that automatically begin on the first day of the months of January, April, July, and October. Read More: Venezuelan Bishops Call for Civil Disobedience against Maduro Regime Read More: Cuban Newspaper Attacks US Senator Rubio for "Blackmailing" Countries into Supporting Venezuela Sanctions https://twitter.com/Truja/status/848922182189297666 OAS meeting on Venezuela suspended today, Monday 04/03/2017. The details on why it was suspended remain unknown. Without any explanation, the meeting in which the judicial coup d'etat in Venezuela was scheduled to be discussed and where at least 20 countries in the region were expected to help to take action to restore Venezuelan democracy, was canceled. Bolivia, Nicaragua, and Venezuela already joined forces last March 28th to boycott the meeting of the Permanent Council. In one hour, they managed to postpone the vote that would open the way to the discuss the application of the Democratic Charter on Nicolas Maduro's regime. googletag.cmd.push(function() { googletag.display('div-gpt-ad-1459522593195-0'); });   Peruvian ambassador Ana Rosa Valdivieso reported that the president of the Council, the Bolivian ambassador to the OAS, Diego Pary, has been open to discuss the session, so it is still possible that the meeting will be held today. The meeting of the Permanent Council, which will be convened by Secretary General of the OAS Luis Almagro, would analyze the recent actions of the Chavez-leaning government and the judiciary that carried out a coup d'etat last week, after the Supreme Court of Justice ( TSJ) tried to usurp the National Assembly's functions. The OAS would discuss a draft resolution submitted by thirteen countries to declare the following rulings: "a violation of the constitutional order" and resolve to implement "inter-American mechanisms" for the "preservation of democracy" in Venezuela, in accordance with the Inter-American Democratic Charter. Source: NTN24

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