Well, No, Moody’s… Jonathan Heath Downplays Peso Devaluation Risks – El Financiero

Well, No, Moody’s… Jonathan Heath Downplays Peso Devaluation Risks – El Financiero

Jonathan HeathDeputy Governor of the Bank of Mexico (Banxico), questioned Moody’s Analytics’ predictions about Future depreciation of the peso.

The economist noted that the “significant” influx of portfolio capital over the past three years was not seriously reflected in the exchange rate.

“What diminished the possession of foreigners and It reduces our weakness in the futurewhich reduces the possibility of the “Coutiño” scenario, he posted on his Twitter account.

The surname refers to Alfredo Cotinodirector of Moody’s Analytics, who asserted that the peso would end up “paying off” for the new monetary reality in the world.

He said in an interview with Bloomberg Line.

What did Moody’s Analytics say about the peso?

The company expects the national currency to depreciate by 20 percent against the dollar as a result of “tightening of monetary policy in the United States” based on an increase in the Federal Reserve interest rate.

“Under these circumstances, the Mexican peso is devalued looks imminent“, pointed out.

And when will this consumption occur? Moody’s Analytics considers it may happen at the end of this year or throughout 2023, although it also takes into account the situation in which weight loss will occur until 2024.

One of the factors that can delay a fall Banxico . reaction to raise the federal interest rates.

weight This week closed less than 20 units, a gain of 0.62 percent, which was determined by the exchange rate 19.93 pesos per dollar.

As for the Weekly BalanceThe peso recorded a cumulative increase of 0.72 percent. This happens after the week ending October 14, when the currency fell 0.24 percent against the dollar.

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