Wednesday, January 4, 2017

Trump has dealt another blow to the Mexico Economy News

Print Donald trump reminded of campaign promises and the collapse of the Mexican peso exchange rate. Buy American and hire Americans – that’s the basic rule, which will follow the administration of President-elect. Trump lashed out at General Motors for the automaker builds cars in Mexico and then imports them free of duty in the United States.

“Produce in the United States or pay a lot of border duty!” — wrote President in his Twitter. In fact, Donald trump makes it clear that after coming to the White house may impose import duties. The criticism has responded another automaker – Ford. The leadership of the group abandoned the construction of a plant for the production of cars in Mexico Potosi San. Now Ford plans to invest $ 700 million in a plant in Michigan that will be created with hybrid cars and electric vehicles.

let me also Remind you that during the election campaign Donald trump threatened to build on the border with Mexico a wall to prevent the uncontrolled flow of migrants and drugs. This topic is still alive. Reuters reports that trump has appealed to the Ministry of national security with different needs in the construction of this facility. Apparently, the wall plan to start building immediately after the inauguration.

Well, now about the market reaction. The peso to the dollar reacted to the news with a precipitous drop of almost 2%. Moreover, the closing was held at a historic low.

Incidentally, the historic low ahead updated and another currency is the Turkish Lira. The crash occurred on the background of the news that the terrorist who killed new year’s night, 39 people in a night club, remains at large, besides, the country recorded a rise in inflation of more than 8.5%, which is three and a half percentage points higher than the target level of the Central Bank.

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