Forex: Some info about The Mexican Peso

Forex Blog: The Mexican Peso

The Mexican Peso has been the worst performing currency on the past year. Forex traders and investors are giving up on Felipe Calderon, the Mexican President, on implementing the tax measures needed for controlling the deficit in the budget.

Mexico's economy, which is the second biggest economy in Latin America after Brasil, has shrunk 11% on the second quarter of present year.

Among the factors that influenced on this, were the swine flu outbreak and the closing of factories along the border with the US.

According to the Central Mexican Bank, the Mexican economy is expected to contract 7.5% this year, the worst since 1932.

Forex traders and investors are becoming a bit skeptic about the Mexican forex market, since they don't know exactly when the local problems will be fixed. They predict that the Peso will become unstable now that Calderon lost some seats on the congress elections that, fact that will make it even more difficult to support a law for implementing higher taxes.

Forecasts claim that the Mexican Peso will go down against the dollar in about 12.7% to 15% (the rate today is 13.1024).

Over the past year, the Peso has going down against the dollar in a 24%, and it has been the worst performing major currency over the past decade.