The decision by Argentina's government to slow the rate of depreciation of the peso will help to bring down inflation further. But it will also lead to a further appreciation in the real exchange rate, which will complicate the central bank’s efforts to rebuild its foreign currency reserves and make meeting FX bond repayments beyond this year very challenging. Elsewhere, the “Plan México” presented by President Claudia Sheinbaum this week is a clear attempt to soothe US concerns about Chinese tech entering the country via Mexico and to stave off tariff threats ahead of Donald Trump's inauguration.
Note: We'll be discussing the economic and financial market impact of Donald Trump’s second term on Mexico in an online briefing on Wednesday 22nd January at 16:00 GMT/11:00 EST. Register here.
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