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News Article

Hurricane Agatha Hits Oaxaca/Peso Appreciates Against US Dollar

By Paloma Duran | Wed, 06/01/2022 - 11:52

Hurricane Agatha hits Oaxaca. President Andrés Manuel López Obrador lamented the death and disappearance of several people in Oaxaca due to Hurricane Agatha. In addition, the president highlighted that the Navy has implemented the DN-II Plan to continue the search for the disappeared and support the victims. “We are going to continue supporting all those affected by the hurricane. Our troops will visit Oaxaca to find out what the victims and their families need the most. I send a hug to the relatives of those who lost or are missing a loved one.”

On Monday, Hurricane Agatha was listed as a category two hurricane, the[JME1]  strongest hurricane to hit Mexico's Pacific coast since 1949. The hurricane brought heavy rain that led to landslides and flash floods. So far, authorities have reported 11 deaths and 33 disappearances, most of which are believed to have been swept away by rivers or landslides. Additionally, the hurricane left 30,000 people without electrical power. The Ministry of Defense announced that there are 1,900 officers and 1,500 sailors working on rescuing missions. In addition, the authorities indicated that with the implementation of the DN-II Plan, which establishes how the population will be assisted in the event of natural disasters, human and material resources will be optimized to find missing people more rapidly.

Mexican currency appreciates against the US dollar. López Obrador stressed that thanks to the actions taken by his government, for the first time the Mexican peso has appreciated 3.5 percent. López Obrador stressed that the increase is mainly due to the government's economic initiatives and the financial stability that has been generated in global markets. “There is a phenomenon that I am proud of , which is the appreciation of our currency. People on Wall Street are surprised by the strength of the peso. We will continue to have a strong year.”

Last week, the Mexican peso appreciated against the dollar and closed at 19.6064 units, which is its best level since March 2020. Experts explained that the appreciation of the Mexican currency was due to inflationary pressures, the weakness of the US dollar in global markets and the difference in local interest rates compared to foreign ones. This year the currency has appreciated 4.4 percent, its best performance in the past four years. Experts argue that if the monetary outlook for the US and Mexico holds up, the peso could have a strong year.

More sargassum is expected to reach Mexican shores in 2022. Minister of the Navy José Ojeda said that despite efforts taken by authorities and civilians, 19,000 tons of sargassum have reached the Mexican Caribbean. Consequently, Ojeda stressed that barriers will be installed to prevent them from reaching the coasts. “Although we have been prepared for the arrival of sargassum, it completely overwhelmed us. The bad weather did not allow us to intervene with the boats. To date we have exceeded 19,000 tons of sargassum, a figure much higher than that of previous years. We are going to have to acquire more barriers.”

Previously, the Ministry of the Navy warned that during the months of May and April huge blocks of sargassum could be observed approaching the Mexican coasts, which were larger than those of previous years. In addition, the Ministry warned that more than 60,000 tons of sargassum could reach the Mexican coast in 2022. Currently, there is a red alert in 24 beaches of the Riviera Maya due to the excessive quantity of sargassum.

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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