Buy custom TEQUILA SENOR : THE MEXICAN PESO CRISIS
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Business
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6 / 1544 |
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Also, more of dollar-denominated tesobonos were issued aggressively instead of peso-denominated cetes. This was likely due to investors being more willing to hold tesobonos as they will be covered against the risks of devaluation and also lower interest rate for tesobonos than cetes. This was an indication that there was a loss in confidence for peso (i...
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This was an indication that there was a loss in confidence for peso (i.e. people expected that the peso will devaluate to a point that even the differential in interest will not be able to cover and so were unwilling to hold on to peso-denominated bonds).
4. Declining Real GDP Growth
The Mexico's inflation rate was really not in control as promised by the Mexican government...
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