Mexican FinMin Says Peso Intervention Does Not Make Sense

Intervention to support Mexico’s peso does not make sense when volatility is caused by global concerns, like jitters regarding the upcoming U.S. presidential election, Mexican finance minister Jose Antonio Meade said on Wednesday.

“If what we have is global worries about the results of the November 8 elections, in which markets worldwide … are moving the peso, then intervention would be like pouring drops of water into the ocean,” Meade said on national television. “It is not an instrument that would work.”

Mexico’s peso weakened more than 1.7 percent on Tuesday after opinion polls showed Republican presidential candidate Donald Trump, who has made disparaging comments about Mexicans, had closed the gap on Democratic opponent Hillary Clinton ahead of the election.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza