The Mexican peso has depreciated 6 percent against the US dollar in the last month. As Reuters reports, officials in Mexico are pointing to causes outside their control to explain the drop.
José Antonio Meade, Mexican Secretary of Finance and Public Credit, said Monday that the peso’s recent drop is partially attributable to the uncertainty surrounding the North American Free Trade Agreement and how quickly the United States Federal Reserve will raise interest rates.
“The exchange rate reflects different kinds of uncertainties, many of which we cannot control, such as the normalization process of interest rates in the United States,” said Meade.
The Secretary later added: “There are other elements which are Mexico-specific. The concern surrounding the (NAFTA) trade agreement.”
As of October 13, Mexico’s currency slipped to 18.81 pesos per US dollar, just under its value on May 19, 2017 when President Donald Trump announced his administration’s intent to renegotiate NAFTA.
Officials from Canada, Mexico, and the United States concluded the fourth round of NAFTA renegotiations on Tuesday. The latest talks ended in tension as US officials continue to press for provisions that their Canadian and Mexican counterparts flatly reject, such as a sunset clause.
The peso hit its most recent nadir of 21.92 on January 19, the day before Trump’s inauguration.