One explanation being put forward to explain the relatively modest moves in the Mexican peso since Trump's election victory is that the country may be spared many of Trump’s tariffs threats (as happened during his first term). But there are big uncertainties around the extent to which Trump may now be more wedded to imposing tariffs and the Sheinbaum administration's ability to build good working relations with the US and its willingness to offer concessions (as it did in 2019). Elsewhere, Argentina’s sovereign dollar bonds have continued to rally amid hopes that Trump's victory will pave the way for fresh IMF funding. While there is no formal mechanism through which the US can make the IMF lend to Argentina, President Milei’s progress on the policy shift will at least make the IMF feel more comfortable in providing fresh funds.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.