Financial Crisis of Argentina Led to a Repercussion in Mexican Economy

The financial crisis of Argentina has seriously influenced the economy of Mexico which was evaluated as relatively stable area for a long while.

According to AP Broadcast, Mexican PESO slumped to 9.99 per dollar on June 21. It had the biggest drop after the lapse of one year and five moths since PESO dropped to 10.02 per dollar after inauguration of Vicente Fox.

In the terms of the decrease of PESO, Francisco GIL Diaz, the Minister of Finance announced on June 20 “Mexico will be able to cope effectively with the financial crisis despite unimproved structure of the financial revenue”.

His speaking stimulated the unrest sentiment of foreign investors who are concerned about the serious financial situation of Mexico. This change in sentiment is occurring despite the present government`s maintenance of a sound macroeconomic policy mix. It brought the withdrawal of the large capitals.

On June 21, government officials said that Mario Bleher, the Governor of Central Bank who played an important role in copying with the financial crisis of Argentina would resign at the end of the month. There were constant trouble between Bleher and Roberto Rabanya (Minister of Economy). Bleher requested a revision of the organization law of Central Bank based on independent control right of Central Bank on government institutions. However, the government rejected his request, so his resignation has been raised.