Trump will return to the White House in January following his victory in last month’s presidential election.
“The tightening of US immigration policies will affect economies that rely heavily on remittances, although the feasibility of large-scale deportations or other measures that would severely affect these flows is unclear,” Fitch said.
The agency highlighted that the lower prices of raw materials, a major generator of foreign currency in the region, and the volatility of foreign financing conditions “could pose a challenge to the region’s central banks, particularly those that continue to fight against persistent inflation problems.
However, he argued that “the strength of banking systems, the strength of external liquidity reserves and, in some cases, the flexibility of currencies should support their ability to absorb shocks.”
