JPMorgan's Lozano Sees Deteriorating Mexican Peso

The video discusses the impact of economic shifts on the Mexican economy, focusing on the peso's appreciation and challenges from oil price shocks and new measures. It explores the Central Bank's monetary policy response to inflation and growth risks, including interest rate adjustments. The discussion also covers US-Mexico trade relations, highlighting potential tariff changes and political dynamics under different scenarios, such as 'hard Trump' and 'soft Trump'.

What has been a significant factor in the appreciation of the Mexican peso in recent years?

• Oil price shocks

• Decreased imports

• Increased tourism

• Rising exports

What is the central bank's strategy to manage inflation expectations in Mexico?

• Devaluing the peso

• Increasing interest rates

• Reducing interest rates

• Implementing quantitative easing

How has the central bank responded to the peso's appreciation beyond the 20 pesos per dollar barrier?

• By maintaining the reference rate

• By removing the reference rate

• By decreasing the reference rate

• By increasing the reference rate

What is a potential outcome of a 'hard Trump' scenario for Mexican trade?

• Complete removal of tariffs

• Decreased tariffs

• Increased tariffs up to 35%

• No change in tariffs

What is a characteristic of a 'soft Trump' approach to trade with Mexico?

• Imposition of trade embargoes

• Complete withdrawal from NAFTA

• Moderation of rhetoric and minor tariff changes

• Dramatic increase in tariffs