Tag Archives: Mexican peso
The Mexican Peso: Liquid, Volatile, but Can We Hedge?
With oil prices falling and the spread of the COVID-19 pandemic, volatility is back in action. In Latin America, Forex valuations are a key barometer. Local currency depreciation is one of the most common reactions to uncertainty (see Exhibit 1). This blog highlights the recent volatility in the Mexican peso and possible ways to mitigate…
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Carlos Urzúa Resignation and Low Volatility’s Response
Mexico’s Finance Minister, Carlos Urzúa, abruptly resigned on July 9, 2019 over policy disagreements with the current government.[1] Market participants reacted negatively, generating volatility in the Mexican peso’s exchange rate, which fell 2.3% right after the announcement,[2] and the country’s equity market, and bringing a trial by fire for the S&P/BMV IPC Risk Weighted Index…
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No New Airport for Mexico Brings Big Hits to Its Markets
On Monday, Oct. 29, 2018, Andrés Manuel López Obrador, president-elect of Mexico, announced that he would cancel the construction of the new airport in Mexico City, which had reached 30% completion. After a four-day unofficial referendum, in which less than 2% of the voters participated, the upcoming president (who will assume office on Dec. 1,…
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Mexican Currency and Elections
General elections (president, senate, and chamber of deputies) are around the corner. The eyes of every Mexican and many people around the globe are on the Mexico-Brazil match of the World Cup—wait, that is another story. Nobody knows what the outcome of the elections will be. We have seen different events where the polls were…
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What the Earthquake Left Us
It is interesting and amazing to see how people react to natural disasters. Whether it be a hurricane, flood, tsunami, earthquake, and no matter where the disaster is located, the whole world takes notice and helps with anything they can. This was certainly the case for Mexico after the 7.1 magnitude earthquake that shook the…
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100 Days Later in Mexico
100 days…is it a milestone? Is it a key number? I’m not sure, but everybody looks like they love to write about it, so I will too. What I know is in Mexico we have a saying that goes, “If the U.S. sneezes, Mexico gets a cold.” Following Dennis Badlyans’s post “Does the Outperformance of…
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