Friday, March 24, 2023

The Mexican Peso Strength Post Is Wrong

Confirmation: With Andres Manuel López Obrador as president, the Mexican peso is at its best despite the global crisis. This situation has taken the world by surprise, and the US Wall Street Journal in particular.

Verification: Partially wrong. The confirmation is based primarily on a journalistic note where it noted that the Mexican currency outperforms any other emerging country, but which also elaborates that some Wall Street experts are predicting the currency’s good future. do not.

Fact: To support the statement, the publication refers to a note that talks about the performance of the Mexican peso. This is from the Spanish newspaper El País.

The said text mentions that the Mexican peso has outperformed any currency in the emerging economy and hints that it has surprised Wall Street, not the world, and even the US. Not even the Wall Street Journal, but also points out that experts and operators differ on the currency’s future, because, although some are positive, others expect depreciation due to low economic growth in the country.

This last information is not quoted or included in the video.

A post shared on Facebook read: “The golden age of the Mexican peso is returning, with AMLO on top. With AMLO, the Mexican super peso is the envy of the world.”

The text accompanies a video showing a driver assuring that the Mexican peso is the Mexican asset that has suffered the least damage against the dollar. “The strength of the Mexican currency surprises the Wall Street Journal despite the global crisis. The currency fared better than any other emerging country and little is said about it”, says Driver.

In the background you can see a screenshot of the title and the lead of the note from El Pais for a few seconds, but it doesn’t match what the host said.

Although El Pais’ note talks about the peso’s good performance, the host distorts the title, as the original says “Mexican currency’s strength surprises Wall Street despite economic weakness”, it talks about the Wall. The Street Journal doesn’t, and it doesn’t even mention the global crisis.

On the other hand, the video does not show or read the rest of the text where it is explained that “Mexican Peso registers Wall Street experts and operators differ on the currency’s future despite good performance”.

The El Pais story, published in late May, reports that some are convinced that the peso will remain close to its current levels, below 20 pesos per dollar for the rest of the year, but also points out that there are others who The depreciation is expected to reach 21 pesos per dollar later this year and 22 pesos per dollar in 2023.

That’s because Mexico had “dismal growth in 2019, has not fully recovered its economic activity lost in the pandemic, and its future prospects are not particularly bright.”

The Associated Press reported that the annual inflation rate reached 7.68% in May. In the first half of June, the price index stood at 7.99%, the highest level since January 2001 and 0.84% ​​higher than the previous month, according to the National Institute of Statistics and Geography (Inegi).

Mexico is facing inflationary pressures amid the weak performance of its economy, which grew 0.9% in the first three months of the year compared to the last quarter of the previous year.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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