Donald Trump is nearing victory over Hillary Clinton in the United States presidential election. As Trump nears presidency the Mexican Peso plummets to record low.
Per CNN Money:
The country’s currency crashed more than 11% to an all-time low Tuesday evening, as the U.S. election race tightened and the prospect of a Donald Trump presidency rose.
But the U.S. is Mexico’s largest trade partner. And Trump has attacked Mexico from Day 1 of his campaign. No wonder, the peso is falling so hard.
“The Mexican peso has been hit hardest, it’s been the biggest casualty,” says Neil Shearing, chief emerging market economist at Capital Economics, a research firm.
One dollar equaled 20.33 pesos by late Tuesday evening. It has never traded at that level before.
It has been said the Mexican’s have a contingency plan in case Trump is elected president. They will need to act quickly. They cannot sit on their hands for several days.
Mexican Peso Plummets
If the Mexican economy continues to suffer, they will not be in a strong position to bargain with the United States. Since the United States provides them with such a huge portion of their economy, they will not be in a position of power to negotiate.
What do you think about the Peso plummeting? Let us know on Facebook.