Wind­fall thanks to Trump

The Dominion Post - - Business -

Mex­ico’s Fi­nance Min­istry got a 321.7 bil­lion peso (NZ$24.4 bil­lion) wind­fall from the coun­try’s cen­tral bank af­ter Don­ald Trump trig­gered a plunge in the peso last year, boost­ing for­eign cur­rency re­serves. The record sur­plus, an­nounced on the Bank of Mex­ico’s web­site on Wed­nes­day, is more than NZ$7.1b higher than last year’s, the min­istry said. It will use at least 70 per cent of the funds to re­duce its debt bur­den, with the rest go­ing to the bud­get sta­bil­i­sa­tion fund or to strengthen the Mex­i­can Gov­ern­ment’s fi­nan­cial po­si­tion. The peso was the worst-per­form­ing cur­rency among the world’s most­traded and emerg­ing-mar­ket cur­ren­cies last year and is now the best per­former among ma­jor cur­ren­cies.

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