AMLO says Mexico is not “that affected” by the ‘Black Monday’ in the markets

The President of Mexico, Andrés Manuel López Obrador, assured that The country is “not that affected” by the ‘black Monday’ of the world marketdespite the fall of the main international stock markets and fears of a recession in the United States.

“It doesn’t affect us that much because our finances are very strong.”Of course, we are neighbors of the United States, there is economic integration and it affects everyone, it affects Japan, it affects everywhere, but we can resist a little longer,” said the president during his morning press conference.

The Mexican leader’s remarks refer to the collapse of Wall Street at the opening on Monday, with falls of more than 1,000 points in two of its main indicators, the Dow Jones Industrial Average and the Nasdaq, due to fears of a recession in the United States.

This seems to have spread to other international markets, such as Japan, where the main index of the Tokyo Stock Exchange, the Nikkei, plummeted by 12.40%the second largest percentage drop in its history.

According to analysts, volatility has reached levels not seen since the stock market crashes of March 2020, linked to the declaration of the Covid-19 pandemic, due to fear that the Federal Reserve (Fed) will dictate the expected rate cut too late.

However, Lopez Obrador said that this will not impact Mexico that muchdespite the exchange rate being quoted at around 20 pesos per dollar, its highest level since 2023.

He argued that the country has record international reserves in the Bank of Mexico, which reach 221 billion dollars and that the Mexican peso is stronger than under other governments.

He also reiterated that although the exchange rate opened at 19.55 pesos per dollar on Monday, it is not a “very significant” loss and noted that other currencies in the world have devalued more.

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