Mexico has an array of tools to face down financial volatility after the result of the U.S. presidential election sent the peso currency into a tailspin, Reuters reported, citing Finance Minister Jose Antonio Meade on Monday.
According to his words, the government can use a windfall stemming from the Mexican central bank's foreign exchange gains on the peso, as well as some 110 billion pesos ($5.3 billion) in its oil stabilization fund, to ensure public finances are stable."And we're facing this situation with well-capitalized banks,"
Meade said at an event in the central city of Puebla.
Trump's win sparked fears because of threats he made in the campaign to dump the 1994 North American Free Trade Agreement (NAFTA) if he could not recast it in the United States' favor, sending the peso to a record low of more than 21 per dollar.
Meade also noted the Mexican government had refinanced its 2017 debt maturities, meaning it can cover its financing requirements for next year in the domestic market."Mexico's public debt ... is something we are revising and discussing with the market,"
the minister said.
Speaking earlier at the same event, Mexico's Economy Minister Ildefonso Guajardo said he was sure Trump would not ditch NAFTA and noted that new chapters should be added to the trade deal to reflect economic changes over the past 20 years.
Guajardo added that an updated NAFTA could cover e-commerce, protection of data and intellectual property in biotech medicine, promoting value chains at small- and medium-sized firms and taking a regional stand against unfair practices such as steel dumping.