President Lopez Obrador Downplays Peso Fall Despite Global Market Crash
President Andres Manuel Lopez Obrador downplayed the fall of the Mexican peso against the US dollar, claiming other countries were hit harder on “Black Monday.”
The outgoing president acknowledged the potential impact of a possible recession in the US on Mexico due to economic integration. However, he expressed confidence in Mexico’s strong finances and ample reserves.
The Bank of Mexico, according to Lopez Obrador, has sufficient resources to weather the storm. Notably, the peso has strengthened during his presidency more than during any other neoliberal government in the past.
Global financial markets experienced a tumultuous day on Monday, with record drops in stock markets. Asia, particularly Japan, significantly impacted Europe and the US. This volatility stems from the collapse of the Tokyo Stock Exchange, which suffered its worst performance since 1987.
The uncertainty surrounding the US Federal Reserve’s delayed interest rate adjustments and the threat of a recession in the US economy further fueled market instability.
Cryptocurrencies also experienced a tumultuous day, with prices dipping below $52,000.