The rebound is a “correction” after last week the Mexican currency had its worst level since September 2020, due to fear of the new variant of the coronavirus and the uncertainty around Banxico, Gabriela Siller, director of economic analysis of Banco Base.
“This is the first weekly appreciation after three consecutive weeks of depreciation, in which it accumulated a loss of 7.63%,” said the analyst.
Throughout the week the exchange rate touched a minimum of 21.12 and a maximum of 21.99 pesos per dollar, according to Banco Base.
The conference was marked by the ratification process of Victoria Rodríguez Ceja, nominated by President Andrés Manuel López Obrador, as a member of the Governing Board of the Bank of Mexico.
Rodríguez Ceja’s nomination, announced just last week, has surprised analysts by the unexpected withdrawal of the candidacy of Arturo Herrera, former Secretary of the Treasury of President Andrés Manuel López Obrador who had been nominated since June.
“Episodes of volatility in the exchange rate associated with the new structure of the Governing Board as of January are not ruled out, as the market could show caution pending the positioning of Victoria Rodríguez in monetary policy decisions,” he warned Siller.
The analyst stated as another factor in the appreciation of the peso the decrease in risk aversion associated with the new variant of the omicron coronavirus, which was detected for the first time in Mexico this Friday.