Published November 23, 2023
- Mexican Peso halts two-day losing streak against USD, with USD/MXN trading down on the day.
- Banxico minutes reveal a unanimous decision to maintain rates, highlighting ongoing challenges in Mexico’s disinflation process.
- USD/MXN to remain trading range-bound amid low volume due to the Thanksgiving holiday in the US.
Mexican Peso (MXN) snaps two days of losses against the US Dollar (USD), though it remains sideways amid thin liquidity trading as markets remain closed in observance of the Thanksgiving holiday in the United States (US). The latest Bank of Mexico (Banxico) minutes emphasized the need to maintain rates higher for “some time” to bring inflation to its target. That, along with the improvement in inflation revealed early on Thursday, weighs on the USD/MXN, which remains trading with losses of 0.02%.
Banxico minutes showed that the Government Board voted unanimously to hold rates at 11.25% for the fifth consecutive meeting after a two-year rate-hike cycle. Policymakers acknowledged advances in the disinflation process, though they emphasized the outlook remained “challenging.”
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SOURCE: www.fxstreet.com
RELATED: Nigeria is ready to loosen its ties with the West as it attempts to join the elusive BRICS group
The leaders of the BRICS countries at a summit in Johannesburg, South Africa.Gianluigi Guercia/Reuters
Published November 23, 2023
- Nigeria is seeking a BRICS membership to enhance its global economic influence.
- Foreign Affairs Minister Yusuf Tuggar emphasizes the strategic importance of joining the group for Nigeria.
- The influential economic alliance welcomed some new members back in August.
Nigeria, Africa’s largest economy, is attempting to join the elusive BRICS club in order to become an influential force on the world economic stage, as reported by Bloomberg.
According to the country’s Minister of Foreign Affairs, Yusuf Tuggar, Nigeria hopes to join the group within 2 years. He also disclosed the country’s intention to join other beneficial groups with good and well-defined intentions.
“Nigeria has come of age to decide for itself who her partners should be and where they should be, being multiple aligned is in our best interest,” the minister stated.
“We need to belong to groups like BRICS, like the G-20 and all these other ones because if there’s a certain criterion, say the largest countries in terms of population and economy should belong, then why isn’t Nigeria part of it?” he added.
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SOURCE: www.Africa.businessinsider.com
BRICS: What’s Happening With The US Dollar & Argentina’s Peso?
Published November 21, 2023
The new BRICS member Argentina’s local currency, the Peso, is facing heavy headwinds against the US dollar this month. The Peso experienced a historic plunge against the US dollar falling to an all-time low of 343. The Argentina government’s decision to devalue the currency by 18% raising the benchmark rate to 118% is among the reasons for the drastic depreciation of the Peso. The economic mismanagement, multiple defaults, US dollar scarcity, and debt led to the decline of the Argentine Peso.
On the heels of the election which saw Javier Milei being elected president, the Peso plunged 353.83 on Monday. The price marks a new low for the currency on the same day Milei won the election. The Peso could see a more notable downward trajectory unless the new president comes up with drastic changes to the economy.
