AMLO Walks a Tightrope: Fiscal Policy Juggling Act Impacts Peso Stability

AMLO Walks a Tightrope: Fiscal Policy Juggling Act Impacts Peso Stability

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Mexico's central bank, Banxico, plays a vital role in safeguarding the peso's stability. It utilizes various tools, including interest rate adjustments and open market operations, to manage inflation and influence the exchange rate.

If inflation rises excessively, Banxico could raise interest rates, strengthening the peso but potentially slowing economic growth. Conversely, lower rates could boost dolar hoy the economy but weaken the peso. Finding the right balance is key.

Additionally, Banxico directly intervenes in the foreign exchange market on occasion to smooth volatility and maintain orderly trading of the peso.

Stay informed with dolar hoy on the latest monetary policy updates from Banxico and their implications for the peso.