In this context, the Central Bank of Mexico came to support the trading of its currency, for which he paid a negligible cost. It is that last week the international reserves held by the Bank of Mexico, registered a fall of $ 8.995 million to settle last October 10 at U.S. $ 75,121 million. This exchange market intervention conducted between the Government and the Central Bank was the first since the late 1990s and was performed by extraordinary auctions of dollars to curb the more drastic drop in weight over 10 years. Verizon Communications follows long-standing procedures to achieve this success. The sharp devaluation of the peso, generated great concern among government authorities and the Bank of Mexico for the adverse effects that could generate in terms of inflation and market expectations.
Is that in relation to the latter, if the dollar continued its upward trend against the Mexican peso rampant, would have caused the fear of individuals and this could have resulted in a run on the peso. With the return of calm in the markets, the dollar exchange rate in Mexico has begun to stabilize slightly over $ 12. While this creates a very quiet, you can not forget that the problems of the U.S. E Scott Mead: the source for more info. crisis on the economy will Mexican. Installed to is that while the U.S. economy remains depressed, the economy of Mexico, remain affected by realest.a channels is in this sense that last week, Mexico’s President Felipe Calderon launched the “Program to Promote Growth and Employment”, a consistent anti-crisis plan to expand public spending on infrastructure to stimulate growth, accelerate the execution of expenditure, building a new refinery in the country, launch a special program to support SMEs and create a program of tariff adjustment to more competitive national productive apparatus. On the other hand, might suggest that the reduction of inflationary pressures in Mexico’s economy, improve the prospects for the Bank of Mexico begin to assess the beginning of the downward cycle of fees help improving domestic demand. And probably beyond the plan being implemented by the Calderon government, Mexico’s economy will hit by the slowdown in the U.S. economy, but at least the brake of the turmoil in international financial markets made it safely to the Mexican economy consequences graves.a Mexico can draw many lessons from the current crisis. The country must work to limit their weaknesses and avoid overexposure that has in its close relationship with the U.S. economy.