Despite the unexpected election results in the United States, and the market’s volatility which has caused the peso to drop, the Treasury and Public Finance Secretary (SHCP) and Mexico’s Central Bank (Banxico) refused to make haste changes.
In a conference held to discuss the win of U.S. president-elect Donald Trump, SHCP Secretary José Antonio Meade Kuribreña and head of Banxico Agustín Carstens explained that the market has maintained some stability.
Additionally, Meade Kuribreña said that the U.S. election results do not imply an immediate impact in trade, financial flows, or the ability of people to travel between both countries.
Meade Kuribreña said that for the moment both the SHCP and Banxico shall refrain from carrying out premature actions as he believes Mexico is stable enough to withstand this new political situation. He noted the country’s macroeconomic stability, recent structural reforms, strength in public finances, and strategic management of public debt.
He also mentioned Mexico’s international investments, oil reserves, low inflation, a Flexible Credit Line from the International Monetary Fund (IMF) amounting to 86.2 billion dollars and a banking system with adequate liquidity to overcome any economically stressful situation.
