Mexico’s peso headed to its biggest weekly drop since January as the country’s political parties wrangled over rules for opening up the energy industry, fueling concern that so-called secondary laws may be delayed.
The currency weakened 0.2 percent today to 13.0813 per dollar, pushing the weekly decline to 0.6 percent. It’s the biggest weekly slump on a closing basis since the period ended Jan. 24.
Yields on peso bonds due in 2024 fell 0.02 percentage point to 6.12 percent, bringing the decrease this week to 0.1 percentage point.
While analysts surveyed by Bloomberg had forecast that the peso would gain an emerging-market best 3.6 percent this year as growth in Latin America’s second-biggest economy quickened, the currency has lost 0.3 percent this year as expansion flounders.
Juan Bueno, a lawmaker from the opposition National Action Party, known as the PAN, said in an interview this week that his party hadn’t yet reached an agreement with President Enrique Pena Nieto’s government on oil regulators.
“There’s been some disillusionment,” Eduardo Rodriguez, a trader at Casa de Bolsa Finamex SAB, said in a telephone interview from Guadalajara, Mexico.
“It looks the talks in Congress about the energy reforms are going to be delayed.”
Bueno, the PAN lawmaker who’s a negotiator for the party in the lower house energy committee, indicated that his party is willing to delay passage of secondary laws on oil until a conflict over regulator autonomy is resolved.
He said that secondary bills to implement energy overhaul may be presented in late April and passed in May.
bloomberg.com
The currency weakened 0.2 percent today to 13.0813 per dollar, pushing the weekly decline to 0.6 percent. It’s the biggest weekly slump on a closing basis since the period ended Jan. 24.
Yields on peso bonds due in 2024 fell 0.02 percentage point to 6.12 percent, bringing the decrease this week to 0.1 percentage point.
While analysts surveyed by Bloomberg had forecast that the peso would gain an emerging-market best 3.6 percent this year as growth in Latin America’s second-biggest economy quickened, the currency has lost 0.3 percent this year as expansion flounders.
Juan Bueno, a lawmaker from the opposition National Action Party, known as the PAN, said in an interview this week that his party hadn’t yet reached an agreement with President Enrique Pena Nieto’s government on oil regulators.
“There’s been some disillusionment,” Eduardo Rodriguez, a trader at Casa de Bolsa Finamex SAB, said in a telephone interview from Guadalajara, Mexico.
“It looks the talks in Congress about the energy reforms are going to be delayed.”
Bueno, the PAN lawmaker who’s a negotiator for the party in the lower house energy committee, indicated that his party is willing to delay passage of secondary laws on oil until a conflict over regulator autonomy is resolved.
He said that secondary bills to implement energy overhaul may be presented in late April and passed in May.
bloomberg.com
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