The Mexican peso is the most depreciated currency in the world


The Mexican peso became the most depreciated currency in the world this Monday, due to investors’ fear about the economic implications of Covid-19, the discussion about the reform of the Bank of Mexico (Banxico) law, and after that President Andrés Manuel López Obrador reported that he tested positive for the virus.

The parity was located this morning at 20.21 pesos per dollar, a loss of the national currency of 1.2% or 24 cents compared to Friday’s closing, shows the wholesale prices of the Bloomberg agency.

It means the worst level of the peso since January 11, when at times that day it reached 20.27 units per dollar.

At retail, CitiBanamex sells the dollar at 20.66 pesos, 25 cents more expensive than on Friday.

The Mexican peso is the most depreciated currency this Monday, with the exchange rate reaching a maximum of 20.21 units, due to global fear of Covid-19 and the greater perception of risk over the country due to the discussion of the reform of the law of Banxico, said Gabriela Siller, the chief economist at Banco Base.

Yesterday, HSBC chief economist Alexis Milo said that the weight loss during Sunday afternoon coincided with the announcement that President López Obrador has Covid-19, news that was given at 6:30 p.m.

The Mexican Stock Exchange also reports losses this Monday and reaches its lowest level since December 31.

The main stock market indicator stood at 44 thousand 347 points, a decrease of 0.8% compared to Friday, and represents its fifth consecutive day down.

This is the longest negative streak since August 2020, when the Mexican stock market also linked five sessions in the red, from 18 to 24 of that month.


Mexico Daily Post