Currency Crash Scars Make Mexico Peso Slump a Risk for AMLO
- Peso is world’s worst performing currency over the last month
- Flight from risky assets cuts investor demand for the currency
Mexican 500 peso banknotes
Photographer: Cesar Rodriguez/BloombergThis article is for subscribers only.
The crash in the Mexican peso this month risks dragging the government’s popularity down with it, in a nation with painful memories of currency crises in its recent history.
President Andres Manuel Lopez Obrador held onto his strong approval ratings during his first year in office, even as the economy soured. As energy and construction investments were shelved and growth slowed to zero, he would often point to the strong peso as a sign that things were well.