Mexico’s economy is in big trouble. First, a massive 20% hike on the price of gas led to chaos and protests.
Now, as more and more companies start talking about moving production back into the United States, and in some cases cancelling plans to expand in Mexico, the Mexican Peso is collapsing.
The numbers are ugly:
- The Peso is down 20% vs the US Dollar since the Election Day in the US.
- It’s down 5% in 2017 alone.
Mexico is facing big trouble. As word spreads through the corporate sector that there is a price to be paid (at least on Twitter) for moving production outside the US, Mexico’s export dependent economy is facing serious trouble.
One US Dollar is now worth nearly 22 Mexican Pesos.
It could get even worse for Mexico. Their central bank has been intervening in the market to prop up their currency, but will run out of ammunition at some point.
Plus, if more and more companies shift production from Mexico into the US, the Mexican economy will continue to suffer and their dollar will continue to decline, reducing the purchasing power of the Mexican people.
Photo – Twitter