Peso Pounded To New Record Lows As Trump Presser Looms

Tyler Durden's picture

The Mexican Peso has plunged to fresh record lows this morning on mounting concerns that Donald Trump’s trade policy could end the country’s privileged status among developing countries.

Looks like Banxico is going to need a bigger intervention...

As The Wall Street Journal reports, the selloff underscores gathering fears that the economic gains Mexico has made over the past two decades could reverse, as the incoming Trump administration takes a confrontational stance that could bring tariffs and border-control measures that until recently appeared unthinkable.

The North American Free Trade Agreement, which in 1994 created a free-trade zone among Mexico, the U.S. and Canada, cracked open the giant American consumer market to Mexican businesses in a way no other emerging market has ever enjoyed. Nafta has also brought relative stability to the peso after a series of currency crises, a crucial factor in reassuring foreign buyers of Mexican bonds and other assets.

Now that advantage could be in jeopardy if Mr. Trump follows through on pledges to renegotiate the agreement.


Luis de la Calle, a former top Mexican trade official, said Mr. Trump’s statements and policies that have caused the peso to decline could backfire. They would dent Mexicans’ ability to buy U.S. goods, which could expand the U.S. trade deficit. A weaker peso is also likely to spur more illegal immigration if Mexico’s economy falters.


“Trump is manipulating Mexico’s currency through his tweets—against the U.S. interest,” Mr. de la Calle said.

We suspect one mention on NAFTA in today's Trump press conference and the peso breaks above 22/$.

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Looney's picture

Vicente Bueller?

Vicente Bueller?

Bueller? Bueller?


CurveBall's picture

Haha, nice! You think they meant Presser or Pressure? Both are fitting, no?

NoDebt's picture

John Spartan:  "The Peso?"

Lenina Huxley:  "Yes, after the currency wars of 2017 all currencies are now the Peso."


CurveBall's picture

Holy shit! All the fast food better not turn into Taco Bell! HA

CurveBall's picture

You got that right. See, according to Cocteau's plan, I'm the enemy. Cause I like to think, I like to read. I'm into freedom of speech and freedom of choice. I'm the kind if guy who wants to sit in a greasy spoon and think, "Gee, should I have the T-bone steak or the jumbo rack of barbecued ribs with the side order of gravy fries?" I want high cholesterol. I want to eat bacon, butter and buckets of cheese, okay? I want to smoke a Cuban cigar the size of Cincinnati in a non-smoking section. I wanna run through the streets naked with green Jello all over my body reading Playboy magazine. Why? Because I suddenly might feel the need to. Okay, pal? I've seen the future, you know what it is? It's a 47-year-old virgin sittin' around in his beige pajamas, drinking a banana-broccoli shake singing "I'm an Oscar-Meyer Wiener". You wanna live on top, you gotta live Cocteau's way. What he wants, when he wants, how he wants. Your other choice: come down here, maybe starve to death

~Edgar Friendly

Mufasa Dali's picture

The Aztec death cult continues to sacrifice on a daily basis, and pay for its victims with paper pesos. Until Platapuro rules again in the affairs of men, and Our Lady reigns o'er their hearts in Heaven, Montezuma ever seeks bloody revenge. Her people await the new Hernan Kukulkan.

Vin's picture

And the "wall" gets higher.

44_shooter's picture

Mexicans will stop buying American products? What the fuck products do we produce that they are buying now, that if they stopped buying we'd even notice?

Dominus Ludificatio's picture

Soft drinks ,and you would notice those big fat Mexican asses shrink.

canisdirus's picture

Having been there recently, the only thing I'm aware of that they buy from the US is wrecked cars that they rebuild and resell down there. Everything else, even if it comes from an "American" brand, is hencho en Mexíco (including cars, food & drinks, etc).

wren's picture

Corona, Tecate, and Tequila. Also, meth. One would think they are manufacturing heroin as well, but it is simply shipped through Mexico. And though I've never checked, I'd almost bet that big pharma manufactures a lot of crap there, like ephedrine and pseudoephedrine. Especially since the primary customer of these drugs is Mexican drug cartels making meth for Americans, not Americans with runny noses.

vasallo7g's picture

Can someone explain how is it that all the American jobs move to Mexico, and Mexico salaries stayed low?

So now there is nobody to buy things because now the people making those things does not have money to purchase them.

NAFTA should have created a bigger market, but because there is some funny bussines going on the market its gone.

Mexico its designed to be the low cost labor of the USA.

USA and Mexico have the same guys ruling them, and no, they are not presidents.

Jack McGriff's picture

Looks like it's time to buy some pesos!    How much lower can it go?

angry_dad's picture
angry_dad (not verified) Jan 11, 2017 10:48 AM

adios amigos!

SummerSausage's picture

Could the fall of the peso have anything to do with drug cartels taking over the already corrupt and now ineffective Mexican politicians?

What company can be successful in a country where cartels regularly kidnap & murder and where electricity, water and civil order are intermittent - all based on psychopathic cartel leaders whims?

Trump's making it more reasonable to invest in the US and signaling a return to common sense and the rule of law is welcome news that puts another nail in the already moribund Mexican peso.

Wang Dang SP's picture

Silver backed Peso coming to a donkey show near you!

Maestro Maestro's picture

**Since neither the Mexicans, the Americans, the Russians nor the Europeans can issue their own (national) currencies, none of you are sovereign countries, that is, free peoples. You are all the bankers' willing slaves. The manipulation of gold's price lower, is the principal method used by the bankers to hide this fact in plain sight. If gold is not money (alongside whatever else) than you are a slave, period. Read on.**

Worse than the bankers rigging gold and silver prices and not having the gold they sold you (or selling gold that they don't have via fraudulent COMEX Futures contracts), is the fact that we don't even have MONEY today.  Therefore all financial transactions and economic numbers predicated on the existence of money are FRAUD and FORGERIES currently.

Electronic digits and paper fiat currencies in use today are NOT money, according to the law of the country that issues the reserve currency of the world, the US Dollar (Article 1, Section 10 of the US Constitution); or by the tenets of the science of Economics (i.e., fiat currencies are not money because they are not a store of value nor a unit of account due to the fact that NOT ONE fiat currency's value is determined or stipulated in concrete legal terms).  Dollars and Euros and Yens are not even lawfully DEFINED as to what they are, what their economic worth and transactional value is, hence they cannot constitute the legal foundation of any lawful contract!

(Also, there cannot be either inflation nor deflation in the ABSENCE of money.  Both inflation and deflation are monetary events hence cannot take place where there is literally no money.)

What we have today is massive GLOBAL FRAUD mascarading as a monetary system based on the (fraudulent) US dollar -- all fiat currencies are basically a derivative of the US dollar, including the Euro, the Yen, the Yuan, the Rouble, the Shekel and the Riyal.


Why do a few people get the right to print fake fiat money out of nothing and buy your goods and  services with it, whereas you have to WORK to obtain the same worthless money created out of nothing?

THAT is the question at the heart of the matter.  That the bankers manipulate interest rates or the price of gold via fraudulent Futures trading (by selling gold that they don't have) with fiat money is a moot point.

To put it differently: why do the bankers get to have anything that they want without working for it and you, you don't?

All this talk about market rigging, monetary theory and fraudulent (paper) gold trading is a cover-up for INJUSTICE.

The US Constitution FORBIDS the use of debt as money; the US Constitution proscribes (debt) notes which is what the US dollar is presently.  Think, all other currencies are just another name for the US Dollar.

What passes for money today is a CRIME, no more no less.


you are all aiding and abetting this crime every time you buy, sell or get paid.

And then you ask, Why our leaders, the politicians, the bankers, and our military men and women are EVIL?

The answer is, because YOU are feeding the enemy!