- The Mexican peso could drop by as much as 25% if NAFTA collapsed, according to
- The Mexican peso was under pressure
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One economist says the peso could crash by as much as 25% if NAFTA collapses
The Mexican peso might tumble if NAFTA talks collapse.
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The Mexican peso could drop like a ton of bricks if NAFTA collapses.
In a recent note to clients, Edward Glossop, Latin America economist at Capital Economics, said the currency could tumble to at least 22 per dollar, but probably further, to about 22.50 or 23 per dollar if the trade deal were to collapse. That would be a drop of about 20% to 25% from recent levels.
If the deal survives, however, the currency could climb to about 17.50 per dollar, he added.
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The Mexican peso was under pressure earlier this week after the Trump administration came out swinging in the fourth round of NAFTA re-negotiations, prompting renewed fears that the talks would break down and cause the agreement to collapse altogether.
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