He Mexican peso became this Monday the most depreciated currency in the world due to investor fears about the economic implications of the coronavirus pandemic, the Bank of Mexico law reform discussion and after the President Andrés Manuel López Obrador reported that he tested positive for COVID-19.
Parity ran out this morning 20.21 pesos per dollar, a loss of the national currency of 1.2% more or 24 cents compared to Friday’s close, they show the wholesale prices of the Bloomberg agency.
It means the worst weight level from January 11, while on that day it reached 20.27 units per dollar.
In retail, CitiBanamex is selling the dollar for 20.66 pesos, 25 cents more than Friday.
The Mexican peso is the most depreciated currency due to global fears of COVID-19 and the increased perception of risk in the country as a result of the discussion of Banxico law reform, said Gabriela Siller, chief economist at Banco Base.
Yesterday, HSBC chief economist Alexis Milo said the weight loss during Sunday afternoon coincided with the announcement that President López Obrador has COVID-19, news given at 6:30 pm.
The BMV loses
The Mexican Stock Exchange (BMV) is also reporting losses and hits this Monday lowest level since December 31.
The main stock market indicator was 44 thousand 347 points, down 0.8% compared to Friday and represents the fifth consecutive day lower.
It’s the longest negative streak since August 2020, when the Mexican stock market also pegged five sessions in the red, from 18 to 24 that month.
IM