Value of Mexican Peso Changes As Trump Speaks

mexican-peso

The value of the Mexican peso fell to a historic low Wednesday after President-elect Donald Trump began speaking at his news conference.

According to Reuters, Mexico’s peso MXN= weakened to 22 per dollar, but eventually bounced back a little, and began to trade at 21.77 per dollar at 13:09 a.m. eastern.

During the news conference, Trump reiterated that he would make companies pay a “huge border tax” if they move manufacturing jobs out of the United States.

Trump also vowed that Mexico will reimburse taxpayers for the wall he intends to start construction on as soon as possible:

“I could wait about a year and half until we finish our negotiations with Mexico, which will start immediately after we get to office, but I don’t want to wait,” Trump said at his news conference. “Mike Pence is leading an effort to get final approvals through various agencies and through Congress for the wall to begin.”

“Mexico in some form – and there are many different forms – will reimburse us and they will reimburse us for the cost of the wall,” Trump continued. “That will happen. Whether it’s a tax or whether it’s a payment.”

Reuters also reported that the peso was the worst-performing major currency in 2016, and it weakened 20 percent against the dollar as the threat of a Trump presidency became a reality.







 

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