World Economic Turmoil and The Movement of Interest
April 10th, 2011
The concern that analysts have been expressing in change, is that there are three weaknesses: first, that migrant remittances will fall to a sum of 22 500 million below what they were in 2007 and 2008 above the fall in employment in the U.S. and summary return of immigrants in advance, two, foreign investment will not reach 15 000 million dollars that had been planned for this year, three, the global financial crisis (now if have been recognizing the Mexican authorities) will limit Mexican exports, imports more than it imported, and as I stated, it will generate a trade balance deficit.
The Mexican currency hit hard, had a loss of 8.5% against the dollar in the first three months of this year.
The Bank of Mexico as it evolves according to the U.S. market and depending on the demand for dollars, you must go to apply corrective measures in further strengthening our weight, thus avoiding greater uncertainty in financial and currency markets, since in due time, the agency continued availability of currency reserves to prop up the market, our sovereign debt will be affected, and in case you want to place bonds abroad, the interest rate that would have to offer, it would be very high, To compete with other emerging markets, which are offering high interest rates, allowing them to place debt on international markets.
Similarly to the problem that may continue to present derived from the weak peso, Banco de Mexico has offered to commercial banks, a mechanism that allows them to amounts financed easy for them and automatically, as long as each operation is backed by eligible assets.
It is hoped that consistent measurements that have been taking the Banco de Mexico, continue to alleviate the problem by allowing the devaluation, so that the Mexican production facility does not deteriorate further and thus the unemployment rate continues to grow, we all want that well go to Mexico, because that way we will be good for everyone.
