It is evident that Mexico is keeping a close eye on the upcoming Presidential elections in the US. Not too long ago, several banks conducted a stress test to simulate a Trump victory. Earlier this week the country performed additional simulations to emulate how the November 8 voting results could affect the economic future of the Latin American country.
These new simulations are a “worse case scenario” proposal to stabilize the Mexican economy, if needed. Regardless of who becomes the next President of the United States, there will be a financial impact that will be felt all over the world. If Trump were to win, Mexico would take a significant hit rather quickly.
Things are not looking all that positive for the Mexican Peso right now. Then again, knowing that the country is prepared for the worst will put a lot of investors’ minds at ease for the foreseeable future. November 8th is getting very close, and there will be a lot of anxious TV watching all across the nation.
At the same time, there is a positive aspect of the Mexican Peso going through a volatile period right now. The government, together with the central bank, has been able to model how financial institutions and corporations would react to specific variables. Additionally, these “experiments” have provided some interesting real-time data that can be used if push comes to shove.
It is impossible to deny that Mexico has to take several possible election outcomes in mind. The outcome could be adverse or even surprising, and all options need to be considered. With the recent stress tests conducted in September of this year, things are looking positive to keep the Mexican economy going without too much trouble.
That being said, it is not unlikely that the Mexican Peso will continue to decline in value over time. Similar to the Brexit outcome, the US Presidential elections will have an impact on the Peso value regardless of who wins. The stock market will follow a similar pattern, although the impact is expected to be less significant.
During this announcement it also became apparent that Mexico has a budget plan for 2017 in place, which is a positive sign. Additionally, there is a plan to increase national economic stability through the state oil company, Pemex
. Regardless of the outcome, Mexico seems prepared for what may come. Time will tell, however, if their preparations are sufficient.If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.
Plus Wallet Impresses with its Speedy 15-Min Token Listings While Coinbase Unveils AI Tool &…
BlockDAG Rolls Out Limited Time 100% Bonus For Community While Ethereum Price Looks Bullish &…
The 5 Best Crypto Wallets Worth Using in 2024 — Find Out Why Selecting a…
With a Total Value Locked (TVL) of $50.72B, Ethereum is the world's largest blockchain, with…
The meme coin market has recently been surging once again; tokens such as Pepe and…
The FLOKI price has recorded over 300% yearly ROI, dominating crypto gains in the meme…