Wall Street Crash Won’t Affect Mexico Much: President AMLO
Mexican President Andres Manuel Lopez Obrador, Aug. 5, 2024. Photo: teleSUR.
August 5, 2024 Hour: 12:39 pm
On Monday morning, the fear of a U.S. recession immediately spread to other stock markets around the world.
On Monday, Mexican President Andres Manuel Lopez Obrador (AMLO) assured that the decline of major international stock exchanges will not affect his country much.
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“It doesn’t affect us that much because our finances are very strong. Of course, we are neighbors of the United States and we are economically integrated. The decline affects everyone… but we can resist a little more,” he said during his morning press conference.
His statements come after the news of Wall Street’s plunge at Monday’s opening, with drops exceeding 1,000 points in two of its main indicators, the Dow Jones Industrial Average and the Nasdaq, due to fears of a recession in the United States.
The fear of a U.S. recession immediately spread to other stock markets around the world. In Japan, the Nikkei, the main index of the Tokyo Stock Exchange, plunged 12.40 percent, a figure representing the second-largest percentage drop in the Japanese stock market’s history.
President AMLO remained unconcerned in the face of this cascading effect, despite the exchange rate trading close to 20 pesos per dollar, its highest level since 2023.
He argued that the Bank of Mexico has international reserves that reached US$221 billion and that the Mexican peso is stronger compared to previous administrations.
“We have enough reserves, a record for the Bank of Mexico. We’ve never had as many reserves as we do now. Another factor that helps us is that the peso has appreciated over the last six years,” AMLO stated.
Although the exchange rate opened at 19.55 pesos per dollar on Monday, the Mexican president said that such figure does not imply a “very significant” loss and pointed out that other currencies have depreciated much more.
teleSUR/ JF Source: EFE
