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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    Nafta Report Sends Peso Reeling

    Lobo
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    • Post n°1

    Nafta Report Sends Peso Reeling Empty Nafta Report Sends Peso Reeling

    Post by Lobo Wed 26 Apr 2017, 5:54 pm

    Nafta Report Sends Peso Reeling
    Nafta Report Sends Peso Reeling BN-SV882_PM_Mex_P_20170406152448
    Photo: Frederic Muller/Shutterstock.com
    By
    Chelsey Dulaney
    Apr 26, 2017 1:28 pm ET

    The Mexican peso is heading for its biggest drop in five months amid reports that the White House is drafting an order to pull out of the North American Free Trade Agreement.
    Politico, citing White House officials, reported that the Trump administration has drafted an executive order to withdraw from Nafta that could be unveiled later this this week or next week.
    The report sent the peso down more than 2% against the dollar, putting it on track for its biggest daily loss since Nov. 10. The Canadian dollar, which has been battered by trade tensions with the U.S. this week, also edged 0.3% lower.
    Mr. Trump had threatened to renegotiate or pull the U.S. out of Nafta throughout his campaign, but the administration’s tone appeared to have softened in recent months. In March, Commerce Secretary Wilbur Ross said the peso could recover “quite a lot” if they reach a “sensible” agreement on Nafta. Later that month, a top trade adviser said the U.S. wanted to create a trade “powerhouse” with Mexico and Canada.
    Those comments helped send the peso up nearly 20% off all-time lows set in January.
    Sireen Harajli, a foreign-exchange strategist at Mizuho Bank, says the peso could remain under pressure as trade talks between the U.S. and Mexico begin. But she doesn’t expect the Mexican currency to breach its record low of around 22 pesos per dollar. One dollar recently bought 19.24 pesos.
    “There is awareness on part of the U.S. administration that too much negative talk will make [the peso] weaken, which is counterproductive in trying to maintain a fair trade relationship,” she said.
    A weaker peso can amplify Mexico’s trade advantage over the U.S. by making its exports cheaper. Mr. Trump has railed against the U.S. trade deficit with Mexico, which totaled $63 billion last year.
    “Trade deficits hurt the economy very badly,” Mr. Trump tweeted Wednesday.
    Some believe the administration is seeking to get a leg up in upcoming Nafta negotiations by threatening to withdraw from the agreement.
    “I don’t really see a scenario where the U.S. pulls out of Nafta entirely, because that’s not in the best interest of U.S. businesses,” said Ms. Harajli.
    https://blogs.wsj.com/moneybeat/2017/04/26/nafta-report-sends-peso-reeling/
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