Omar García Castelazo, subgovernor of Banco de México (Banxico), assured that the exchange rate has operated in order and better than other currencies, despite the imposition of steel and aluminum tariffs and the pauses of rates determined by President Donald Trump.
“In our risks for inflation to the rise: we see that there may be a depreciation of the Mexican currency and we have seen a behavior of the Mexican weight that has been better, than other coins at the international level,” he said at the end of the presentation of the Banorte Housing Price indicator.
The weight has had an orderly behavior, even with the uncertainty generated by Trump, said the economist.
He added that the Mexican currency has oscillated between the same levels since Donald Trump took possession.
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He said that while the exchange rate has an update risk, also “there are other risks that are opposed, such as greater slack in the country’s economic conditions, which would mitigate the transfer of the exchange rate at prices.”
“We are seeing that Mexico will continue to grow both this and the next year,” he said.
He said that the GDP rate is one of the “already incorporated into our inflation prognosis and we have it incorporated into the analysis of the determination of the reference rate.”
“We have been seeing the tariffs as a negotiation tool by the United States Administration. I believe the valuations we have to do is effectively when the tariffs will be applied and if the application will have a more durable impact or has actually been a round trip in the negotiations, ”he said.
The subgovernor said that it is positive for a positive dialogue between the authorities of the United States and Mexico to stop the collection of general tariffs.
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“We are waiting for information and the truth that this topic of the tariffs has been behaving intermittently and it is your topic that has come back and forth,” he said.
“We have incorporated all the information and what we saw today was that the Government of Mexico will wait a few days to give information about tariffs,” he recalled.
“We are in our process of recalibration of monetary policy and that is what we have been communicating in the Bank of Mexico,” he said.
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