The Mexican peso depreciated almost 1% compared to the US dollar on Thursday, the day after the American president Donald Trump announced that it would impose a price of 25% on imports of vehicles produced outside the United States From next week.
The Peso closed at 8:30 p.m. at the dollar, According to the Bank of Mexico (Banxico)A depreciation of 0.8% compared to its closing position of 20.14 in the greenback on Wednesday.
The damping could have been more pronounced if the vehicles manufactured in Mexico were to be subject to the full price of 25%.
As the American content in vehicles assembled in Mexico will be exempt from the obligation, the effective price on Mexican manufacturing vehicles will be lower – 15% on a car with 40% of American content, for example.
The depreciation of the peso has been putting money on Thursday in its lowest position since March 10.
March 14, The exchange rate in peso appreciated at a four -month 19.84 in the dollar. It is now 2.3% lower than this level.
Mexico Bank reduces the 9% key interest rate
The Board of Directors of the Bank of Mexico voted Thursday in favor of reducing the key interest rate of the central bank by 50 basis at 9%.
The decision made three days after the National Agency for Statistics Inegi indicated that Mexico’s annual inflation rate fell to 3.67% in the first half of March.
Banxico targets inflation of 3% with a tolerance of 1 percentage point in both directions.
The unanimous decision of the members of the board of directors of the Mexico bank to reduce the reference rate by 50 basic points came after A reduction of the same size in early February.
In a statementBanxico said that his board of directors “considered that the disinflation process remains on the right track and reiterated that the fight against inflation is at a stage where the objective is to bring inflation from its current level, around its pre -prosemic historical average, to the target of 3%.”
“… The board of directors considers that, looking towards the future, it could continue to calibrate the position of monetary policy and consider adjust it in similar amplitudes. It plans that the inflationary environment will allow it to continue the rate reduction cycle, although maintaining a restrictive position,” said the bank.
“(The Council) will take into account the effects of the country’s low economic activity.
On Friday, when the lower rate of banxico is entering into force, official loan costs in Mexico will be double those of the United States, where the rate of federal funds of the federal reserve is currently set at a range of 4.25% to 4.5%.
The Mexican peso was supported for a period extended by the difference between the interest rate in Mexico and that of the Fed, but was strongly deposed at the end of 2024 after the complete victory of the Morena party in power in the federal elections of last June.
Mexico News Daily
