The Mexican peso fell again earlier this week, registering a drop of 0.6 percent, increasing the United States dollar exchange rate to 19.19 units, according to data from the Bank of Mexico. At closing the peso was valued at 19.22 units, a level that has not been seen since March.
This is according to Riviera Maya News, which report that the strength of the dollar in the international market was the main factor of the depreciation of the peso.
It’s also been effected by nervousness over trade talks with the United States
“The Mexican currency was at its weakest level in the last six months amid high uncertainty surrounding the NAFTA negotiations,” said economic analyst Sergio Luna to Riviera Maya News.
If NAFTA was terminated, however, rating agency Standard & Poor could reconsider its current credit rating in Mexico.
In just four days, the peso decreased 0.8 percent, according to Indeed, the MSCI Emerging Markets Currency Index.
But a weak peso is good for tourism, at least in Mexico. Reuters reported that last year, the number of visitors rose nine percent while the dollar increased 20 percent against the peso.
Around 35 million international tourists visited Mexico in 2016 compared to 32.1 million in 2015.
On the other hand, tourism numbers from Mexico are down.
Forbes reported that since June 2016, when Canadian Prime Minister Justin Trudeau announced visa-free travel for Mexicans, tourism from the country has increased 16 percent. Additionally, political issues, namely President Donald Trump’s anti-immigration rhetoric, have caused Mexican travelers to think twice about where they vacation. A weak peso against the US dollar, political determents, and easier access to Canada have resulted in a $1.6 billion loss in tourism spending.
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