Do the actions of the Mexican government help the peso beat the dollar?

When we hear that our currency, the Mexican peso, manages to strengthen against the dollar, we are happy, but do we really know how to determine the parity of currencies?

The exchange rate is determined through the strategy of the central bank, which tries to influence in an important way in its monetary policy decisions, this to promote stability, as it works in Mexico.

The importance of the exchange rate includes, mainly, global trade. Being through the parity between currencies as it is possible to observe the effect on prices, that is to say the loss of the value of the local currency.

What would affect the exchange rate?

There are different measures that are affected, one of them is the inflation index , reflected in the loss of purchasing power. Another is the decision of central banks, their interest rate , which is reflected in the demand for instruments of doubt in the country. The capital flows, ie how marketers countries manage to maintain their interest in negotiating this through supply and demand.

So far in the current government of the president, Andrés Manuel López Obrador , the peso has managed to strengthen its value, showing a growth of more than 6.7 percent .

This is due to international issues, such as the negotiations between China and the United States , the closure of the US government , the possible Brexit agreement. and not the decisions of the current government, as they have mentioned.

Yesterday, in the news of Ciro Gómez Leyva in Imagen Television, David Páramo pointed out that yes the foreign currencies, such as the Turkish Lira, the Brazilian Real or the Russian Ruble, move in the same sense as the Mexican peso means international issues and not government decisions.

Through the Investing.com platform we consult the value of the aforementioned currencies.

As it is observed, in the range of closing to the day it shows positive values ​​for the different currencies, whereas in the percentage the values ​​are maintained in a line of appreciation as a whole.

The study of the economy once again shows that the parity of the currencies, specifically the peso against the dollar, is managed through international economic speculation.

Source: dineroenimagen

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