Mexican Peso Nosedive after Trump's Win
Mexican Peso Nosedive after Trump's Win
The Mexican Peso Takes Unabated Nosedive Weeks after Trump's Win as Tycoon Carlos Slim Loses $4.7 Billion!
The presently embattled Mexican Peso was almost invariably mentioned in quite a large number of financial bulletins during the just-concluded US presidential campaign. The currency made headlines chiefly for the not-so-good reasons linked to Donald Trump's avowed intention to put up a wall separating Mexico and the United States of America.
As delicately fragile as the unpredictable global economy shifts often are, the sheer thought of a real physical barrier blocking the small American country from accessing to the world's greatest superpower spoiled her currency almost overnight. Many analysts conjectured that Trump's controversial decision would certainly slow down domestic growth.
Again, this unappealing coverage further decimated the already badly weakened Mexican legal tender. Up to the end of November, after almost half-year of negative rap, the besieged Peso progressively spiralled into a deeper nosedive, with little hope of any foreseeable recovery.
The Mexican Peso Takes Unabated Nosedive Weeks after Trump's Win
To unambiguously show how the Republican candidate's threats of building the infamous protectionist wall, unfortunately, devalued Mexico's diminishing reserves, the Peso was seen drastically losing value whenever pollsters depicted any slightly greater possibilities of a Trump win.
Accordingly, the frequently ailing medium of exchange would go through some remarkable bouts of relief whenever Democrats were projected as likely to wallop their capricious challenge. Unluckily, the bruised currency didn't get an uninterrupted opportunity to repair its soiled repute that had already fueled a feeling worldwide distrust.
As fate would have it, the crippled currency lapsed into a downward depreciation the moment Trump started edging out Hillary Clinton on the Election Day. The proverbial final straw eventually broke the camel's when Donald Trump was announced the victorious President-Elect. Mexico's legal tender has since suffered continual blows, starting with a 13% instantaneous crash as soon as its sworn nemesis received the first congratulatory tweets. Even as at this midnight, 1st December 2016 Mexico's money value recovery prospects looked a far-fetched stroke of luck.
Ironically, it's constantly depreciating trend didn't decelerate after the President-Elect's later claims that the much-hyped "wall" might end up taking the less portentous form of a simple barbed wire fence. While some pundits immediately prophesied a probable little sigh of relief for the afflicted currency after Trump's mitigation of the initial threats, global exchange records didn't show any significant improvement.
How the entire economy of a whole republic can suffer so much in the hands of a single man's potentially divisive utterances is an unsettling revelation of how leaders of influential world powers might inadvertently worsen millions of innocent livelihoods in some less privileged regions out there.
Even as the whole of Mexico battles a persistent money devaluation and soaring product prices, one of the top 3 world's richest individuals wasn't spared the wide-ranging meltdown. Carlos Slim often ranked the 2nd wealthiest person after Bill Gates of Microsoft Inc., is said to have suffered hefty consequences amounting to billions of US dollars as his aggregate net-worth staggered under the all-throttling nationwide devaluation flu.
As at yesterday afternoon - 31st November 2015 -Mr. Slim had lost a whopping $4.7 billion, and keen observers in the stocks world contend that the tycoon's towering figures may still go through a more damaging shave-off.
Summarily, inasmuch as the incoming US commander-in-chief may not have seriously intended to make good his loose-canon threats after the 20th January swearing-in ceremony, he has evidently succeeded in ruining a neighbouring nation's economy - perhaps planting paralyzingly lasting dents that might require many years to effectively cure.