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News Article

AMLO: Peso Value Remains/Earthquake Interrupts Conference

By Paloma Duran | Thu, 03/03/2022 - 10:59

AMLO: Peso has not been affected by the Ukraine-Russia war. President Andrés Manuel López Obrador said that the Mexican currency "is resisting" despite the market fears of economic instability due to the Ukraine-Russia war. “We are now facing the war, Russia's invasion of Ukraine and the reaction that this military confrontation has provoked. However, our currency resists. Let's hope we stay like this and that it does not affect us economically or socially.” 

Experts have said that all economies in the world will be affected by the war between Russia and Ukraine, especially due to unstable market conditions and the expulsion of Russian banks from the SWIFT financial system. Today, the Mexican currency was trading at MX$20.63 per US$1, falling 2 percent compared to Wednesday. Experts also say it is a matter of time before the peso is dragged down by international concerns about inflation.

AMLO wants a European Union for America. López Obrador said that it is necessary to achieve an integration in Latin America similar to the European Union to accelerate the development of the continent. “It seems difficult to achieve because for 200 years there has been a policy of disrespect and mistrust toward the countries of (Latin) America. But we must seek an agreement, like the one in Europe. We can have a better future.”

Over the years, there have been several regional initiatives, such as ALAC, ALAD and Mercosur, to create a block similar to the European Union in Latin America. However, these have not yielded results. According to experts, the failure is because the Latin American economy depends on countries like China and the US that are not within the region. In addition, the size of the region makes it difficult to integrate and control. As well, there have been several changes in ideology in recent years, diminishing prospects for establishing long-term political stability.

AMLO says he avoided indebting the country during the pandemic. López Obrador said that during the COVID-19 pandemic, the business sector asked him to grant low-interest loans through the acquisition of debt. However, he refused and broke relations with them. “With the pandemic crisis, they asked me for two things: that we indebt the country to give low-interest loans to the business sector and that I declare a moratorium on tax payments. They basically wanted me to put the country in debt. That did not happen. My duty is to the people, not the businessmen.”

The relationship between the business sector and López Obrador has always been inconsistent, especially due to the implementation of national policies that seek to strengthen state companies and benefit them over their private counterparts. According to experts, only a small number of businesspeople fully support the president. So far, the business sector has not commented on the president's statements.

Earthquake interrupts morning conference. As López Obrador gave his morning conference, the seismic alert in Mexico City began to sound. Subsequently, the president left the Treasury Room of the National Palace. Meanwhile, journalists were asked to remain in the room to later be evacuated in an orderly manner. After returning to the room, López Obrador said that there was an earthquake of magnitude 6.2 in Veracruz. “The report in Mexico City is that there was no serious damage, it was not strong, at least here. However, we must attend to the people of Veracruz. Hopefully, we wish with all our hearts that there are no human losses.”

The National Seismological Service reported that at 8:40 a.m. an earthquake of magnitude 5.7 occurred in Veracruz. After the earthquake, five helicopters carried out their review protocol in Mexico City and reported that there was no serious damage. In addition, López Obrador communicated with the governors of Oaxaca and Veracruz, who indicated that no major damage had been reported.

The data used in this article was sourced from:  
Gobierno de México, Milenio
Photo by:   Gobierno de México
Paloma Duran Paloma Duran Journalist and Industry Analyst