Banxico
-
NAFTA and the Mixed Effects of Trade: A Mexican Case Study
•
In August 2017, the United States, Canada, and Mexico began renegotiations of the North American Free Trade Agreement (NAFTA)—one of President Trump’s top priorities during his electoral campaign. Trump argued that trade with Mexico and Canada had resulted in job losses and trade deficits, particularly with Mexico. Negotiations are scheduled…
-
Foreign Exchange Interventions: A Comparison of the Mexican and Brazilian Models
•
Over the past several years, foreign exchange rates among Latin American countries have fluctuated significantly. These oscillations have been caused by several factors, including the U.S. presidential elections, changing oil prices, the Taper Tantrum (the expectation of a reduction in bond purchases by the Federal Reserve), interest rate hikes by…
-
Uncertainty in Financial Markets and the Exchange Risk Premium of the Mexican Peso
•
Since 2015, the Mexican Peso has been the second most depreciated currency among emerging countries. This depreciation is mostly due to the operating and liquidity conditions of the currency, since it can be traded twenty-four hours a day, seven days a week, which is a relatively uncommon feature among currencies. According…