Mexico peso at it’s weakest since last crisis
The worlds economy seems to be having a bit of a meltdown as we speak. It's even hit Mexico according to this article in Reuters:
MEXICO CITY, Oct 6 (Reuters) - Mexico's peso plunged on Monday in its biggest one-day drop since the currency crisis of the mid-1990s as financial trouble in Europe stoked worries of a global economic downturn.
The peso MEX01 fell 6.43 percent to 11.98 per dollar, its weakest level against the dollar since the government ended currency controls in late 1994. Monday's fall was the biggest one-day slide for the peso since March 1995.
In case you don't know, 1994-1995 was when the Mexican economy collapsed. By some reports 50% of the population fell below the poverty line at that time. Mexico was finally starting to fully recover from that crisis. All the banks and financial infrastructure we see in Mexico today are very young and have grown since that collapse.
In other Mexico economy news: I read a recent article stating that Mexico may be becoming the new China as far as manufacturing. This would be great news for Manzanillo since they have one of the largest ports in the country.
...with skyrocketing oil prices, escalating labor costs in China, and an appreciating currency there, companies targeting the US market are doing the math and giving Mexico another look. So-called "nearshoring" could generate a reverse globalization that brings manufacturing back to Mexico.
More manufacturing means more money coming into the country. So there you have it, bad news mixed with possible good news for the Mexican economy. Assuming there still is one.
Who knows what the future really holds for the World's economy.
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[...] cost of importing foreign goods from China, more and more companies are looking towards “nearshoring” as a better way to outsource. This port addition would put Manzanillo in an excellent [...]
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