This may seem a little surreal. US treasury secretary under the Trump administration, Wilber Ross is talking of steps to stabilize the US dollar/ Mexican peso exchange rate. Speaking on CNBC today, Mr. Ross suggested that the US administration would think of ways to work with their Mexican counterparts to stabilize the exchange rate. The dollar/peso exchange rate has been very volatile since the Republican candidate Donald Trump got elected as the president of the United States. Mr. Trump had been severely critical of Mexico during his election campaign and the US border with its neighbor. Mr. Trump has vowed to renegotiate the North Atlantic Free Trade Agreement (NAFTA), calling it a disaster for the United States. Mr. Trump has vowed that he will make Mexico pay for his proposed border wall.
While Mr. Ross said that the administration needs to think of mechanisms for a stable exchange rate, the Mexican central bank governor said that the country is not considering a swap line from the US Federal Reserve.
Peso is enjoying the biggest single-day gain since January as the news surfaced. The Mexican peso is currently trading at 19.56 per dollar, up 2.4 percent so far today.