The Mexican peso had yesterday (April 21) one of its best days, in its price against the dollar.
Reached levels not seen in six months. He closed the day at 19,7141 units per dollar.
The president of Mexico, Claudia Sheinbaum, said that the appreciation of the peso against the dollar is explained by the strength of the Mexican economy.
He also pointed out that the Mexican economy is resisting the effects of the new economic vision, the most protectionist of the US, by virtue of the public policies of the government of the fourth transformation.
He cited the increase to wages, its positive impact on the domestic market, universal well -being programs, public investment and promotion of private.
The Mexican economic model, he said, is allowing investment in Mexico to increase, despite the tariffs that are applying to the world, the Donald Trump government.
In this regard, it is worth registering the context, in which the strengthening of the weight against the dollar is being recorded.
It should be noted that the Mexican peso, like most of the coins of emerging countries, registered profits against the dollar, in one of the moments of greatest uncertainty, for the tariffs that are announcing and applying the US to other countries.
Additionally, in recent days, concern in markets for the economic perspectives of the United States has increased. The US economic panorama is overshadowing, precisely because of the consequences generated by the commercial war that decided to undertake its government.
In the center of the commercial war between the US and China, the obvious transfer of confrontation, to the financial field is present.
The dollar could be beginning to lose ground as a reserve currency.
The Central Bank of China ordered the state companies of that country to use Yuan in payments and liquidations abroad.
And in the last hours, the public confrontation between President Donald Trump and the president of the Federal Reserve, Jerome Powell, is directly impacting the mood of investors.
Trump’s frontal attacks against Powell have destabilized markets. From Trump’s own government, the species of Powell’s possible removal has been released, whom Trump has nicknamed in his social network as the “Lord too late.”
Powell has been very clear and publicly said that tariffs have been “significantly greater than expected”
The fall of the Wall Street markets resulted in another “Black Monday.”
Trump is directly attacking the president of the Fed and consequently is generating concern among investors for the autonomy of the Central Bank.
The three main Wall Street indices had strong losses: Dow Jones fell 2.48%; The S&P 500, lost 2.36% and the Nasdaq technological composite dropped 2.55%.
Undoubtedly, the attacks of the US president of the FED weaken US assets.
The EU economy already shows signs of weakening. And the dollar is reflecting it.
The Mexican weight was not the only currency that was appreciated, in the face of the weakening of the US currency; Most of the currencies of emerging countries had profits against the dollar.
The data show that the appreciation of the peso is explained by the weakening of the dollar.
And what happens internally in the US, specifically on Trump-Powell confrontation, depend on the economy in that country and the price of the dollar.
The Mexican economy, meanwhile, records remarkable weakness in its growth rate.
It is very likely that at the end of this April a technical recession is confirmed.
The increase in salaries and social programs (plus the large remittances) have supported consumption, certainly.
The government works, from the past six -year term, are still representing costs for public finances. And those of the current government are barely screened and its execution, it is very incipient.
The negotiation of the Mexican government with that of the US has been prudent and patient. In general it can be considered positive. But in accordance with what the president of Mexico declared, agreements on steel and aluminum tariffs are not yet reached, to the products not registered in the T-MEC and the finished and auto parts cars.
Regarding foreign investment, it is true that important ads have registered, but the flow that was expected by Nearshoring has not yet observed.
What the Government of Mexico achieves with that of the US, in tariff matters, depends on the behavior of the economy, investments and the price of the peso against the dollar. At the same time.
