At the close of the markets, Banco de México (Banxico) announced that the spot dollar, the benchmark among banks, was trading at 24.78 pesos.
The Mexican peso fell to another record low this Monday, April 6, when it was quoted at 25.77 units per dollar in the markets, and up to 26 at bank windows.
However, at the close of the markets, Banco de México (Banxico) announced that the spot dollar, the benchmark among banks, was trading at 24.78 pesos.
The depreciation of the Mexican peso came as a result of a further weakening in oil prices and after the weekend the national government announced an economic plan to deal with the crisis caused by the coronavirus.
The President of Mexico, Andrés Manuel López Obrador, announced on Sunday that he will use a budget income stabilization fund and various trusts to boost the Mexican economy, weakened during the pandemic.
He also reported that the federal government will give priority to the poorest and most vulnerable at this stage. However, it contemplates the injection of 63,700 million pesos (2,581 million dollars) to grant credits, via development banking to companies due to contingency.
The measures were not well received by all sectors. Gustavo de Hoyos, president of the Employers’ Confederation of the Mexican Republic (Coparmex), criticized that this amount only corresponds to 1.4% of the state’s programmable spending, while in the US 849,000 million dollars, equivalent to 10% of its Gross Domestic Product (GDP), will be allocated to companies, reports El Economista.
Currently, Mexico registers a total of 2,143 people infected with the new coronavirus, 94 deceased and 633 patients recovered from the disease. This Sunday, López Obrador said that “the most difficult part of the epidemic is yet to come.”
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