Understand the fall of the Mexican peso!

He Mexican peso it has been falling since December against the US dollar. The biggest factor influencing this drop is the pandemic. This is because the pandemic has caused a drastic decline in the country's economy, leading to an increase in inflation.

Mexico is going through the health crisis with a figure of more than 153,000 deaths reported to date, according to the Secretary of Health. So, it ranks fourth in the number of deaths in the world. The pandemic has led to the closure of the economy in the country and in the world, and as a consequence the fall of the Mexican peso.

Prices in Mexico have risen by 3,33% between 2020 and 2021 in just the first half of January. These are values much higher than expected according to the national statistics institute.

See more information about the fall of the Mexican peso!

The Mexican currency quotes 20.3907 per dollar for sale and 19.8827 for purchase. With these values, the peso accumulates a depreciation of more than 2% compared to last week.

The Mexican peso and the stock market fell considerably on Wednesday. The Mexican stock market falls by 1.76% in reference to the S&P/BMV IPC stock index, it was located at 44,262.01 points, with a volume of 247.1 million titles traded.

coronavirus crisis

Analysts point out that this economic situation is due to the increase in cases of deaths and infections from the coronavirus that the country has been experiencing in the last week. In this scenario, all the countries of the world reach a figure of more than 100 million cases, struggling to contain the virus and the fight for a shortage of vaccines.

The hope of the economy improving with vaccination is being extinguished with the slowness of the distribution of vaccines together with the negative effect of the pandemic on the economic sector.

Therefore, the global financial markets see greater risks, spreading the fear that the measures to contain the coronavirus in the large economies are not enough and generate the opposite effect.

The dollar index advances with risk aversion, this is because investors are demanding more security, the most risky investors are being cautious at the present time. Therefore, this has generated the fall of the Mexican peso. See more news on our website!

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