The uncertainty due to the lack of progress in the renegotiation of the Free Agreement Trade of North America (NAFTA) could bring the dollar to trade at up to 22 pesos by the presidential elections next July 1, experts say…//
El Universal reports the delay in reaching NAFTA consensus, coupled with the strength of the dollar against the main currencies of the world, produced the scenario last week of the US currency being sold at 20.20 pesos in Citibanamex windows.
With this, the price of the dollar is at its highest level since the beginning of March 2017, after the president of the United States, Donald Trump, spoke about the need to renegotiate NAFTA.
In its wholesale quotation in the financial exchange markets, the dollar closed last week offering in 19.95 pesos, that is, an accumulated depreciation in the week for the Mexican currency of 2.95%, marking five consecutive weeks of decline.
Short-term pressures could be reduced if a NAFTA solution is achieved or there is clarity.
What could happen with NAFTA? With more consensus, the parity will remain between 18 and 19
pesos per greenback, the analysts consulted explained.
On the one hand, the president of Industrial Development of the National Chamber of Industry
of Transformation (Canacintra), Juan Manuel Chaparro, and the general director of the Institute
for Industrial Development and Economic Growth (Idic), José Luis de la Cruz, agreed that the current scenario of the negotiations could keep the dollar hovering around 20 pesos.
However, the senior exchange rate strategist at Banorte, Juan Carlos Alderete Macal, and the general director of the Center for Economic Studies of the Private Sector (CEESP), Luis Foncerrada Pascal, consider that the exchange rate will be maintained in a range of between 18 and 19 pesos per greenback.
Source: El Universal
