Peso depreciation is ‘necessary’ – Bank of Mexico report
Relationship with the US has made Mexico sensitive to economic policy decisions by its major trade partner, report says
The Bank of Mexico has said an exchange rate depreciation is both "natural and necessary", given recent international events.
In its latest quarterly report, published on November 23, the central bank explained recent international events, such as the US election, had the potential to affect the "structural relation" of Mexico with its trade partner, stressing a depreciation of the peso was the "most efficient adjustment mechanism" and shock absorber in this context.
"Even though the close trade
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