Peso hit by ‘Trump fac­tor’

The Myanmar Times - - International Business -

DON­ALD Trump has an­gered Mex­i­cans with his anti-im­mi­grant rhetoric and caused po­lit­i­cal headaches for their pres­i­dent. Now the White House hope­ful is partly blamed for the na­tional cur­rency’s free fall.

The cur­rency dropped to a record 20 pe­sos to the dol­lar on Septem­ber 19, a 2.15 per­cent fall from last week when it closed at 19.57, ac­cord­ing to bank­ing firm Banamex.

Fears over a pos­si­ble in­ter­est rate hike by the US Fed­eral Re­serve are cited as a key fac­tor for the peso’s drop, al­though an­a­lysts now be­lieve the Fed will keep it un­changed when it meets to­day.

But an­a­lysts also point to con­cerns over Mr Trump’s chances against Hil­lary Clin­ton in the US pres­i­den­tial elec­tion on Novem­ber 8.

“This ‘Trump ef­fect’ causes much con­cern for Mex­ico’s fu­ture,” Raul Feliz, an­a­lyst at the Cen­ter for Eco­nomic Re­search and Teach­ing think thank in Mex­ico City, told AFP.

Mr Feliz cited Mr Trump’s threat to de­port mil­lions of un­doc­u­mented mi­grants from the United States, rene­go­ti­ate a tri­lat­eral free trade deal with Mex­ico and Canada, and make Mex­ico pay for a gi­ant bor­der wall.

The real es­tate ty­coon has threat­ened to cut off bil­lions of dol­lars sent home by Mex­i­can im­mi­grants in or­der to force their home­land to pay for the wall.

Remit­tances are among Mex­ico’s main sources of rev­enue along with oil, tourism and ex­ports. –

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