Menu Search Facebook Twitter
Search Close
  • Capital Coahuila
  • Capital Hidalgo
  • Capital Jalisco
  • Capital Morelos
  • Capital Oaxaca
  • Capital Puebla
  • Capital Quintana Roo
  • Capital Querétaro
  • Capital Veracruz
  • Capital México
  • Capital Michoacán
  • Capital Mujer
  • Reporte Índigo
  • Estadio Deportes
  • The News
  • Efekto
  • Diario DF
  • Capital Edo. de Méx.
  • Green TV
  • Revista Cambio
Radio Capital
Pirata FM
Capital Máxima
Capital FM
Facebook Twitter
X Welcome! Subscribe to our newsletter and receive news, data, statistical and exclusive promotions for subscribers

Banorte Projects Sharply Weaker Mexican Peso Next Year

A further drop in Mexican oil production, low oil prices and fiscal challenges facing the state-run oil company Pemex will continue to pressure the peso

Mexican pesos and U.S. dollars banknotes, photo: Reuters/Edgard Garrido
By Reuters Whatsapp Twitter Facebook Share
1 year ago

MEXICO CITY — The Mexican peso will continue to weaken next year due to low global oil prices and falling Mexican crude production that will widen the country’s current account deficit, according to strategists at Mexican bank Banorte-IXE said on Monday.

Banorte strategists, led by Gabriel Casillas, said they expect the peso to trade at 19.80 per dollar by the end of next year. They also revised their outlook for the end of 2016 to 18.50 per dollar from 17.60 per dollar.

“We believe the peso needs to fall further in 2017 given the likely prospects of persistent headwinds for the oil sector and to help in correcting a wider imbalance in external accounts,” Banorte wrote.

Relative to the dollar, Banorte’s projection of 19.80 per dollar is 6 percent weaker than Friday’s close of 18.60 per dollar and it is 8 percent weaker than the median 2017 estimate of 18.20 in a poll from the central bank published early in August.

Banorte said it expected a further drop in Mexican oil production, low oil prices and fiscal challenges facing the state-run oil company Petróleos Mexicanos (Pemex) would continue to pressure the currency.

Some models suggest the peso is already deeply undervalued, Banorte said. It added, however, that these failed to take recent structural changes, particularly in the oil sector, into account.

“The double whammy of low crude-oil prices and falling production suggests continued weakness for the country’s current account balance at least until next year,” Banorte said.


Comments Whatsapp Twitter Facebook Share
More From The News
Latest News

Fast-moving flames force people to flee ...

2 days ago

Prosecutors: No charges against conducto ...

2 days ago
Latest News

Southern snowfall isn't deep, but many f ...

3 days ago
Latest News

New Mexico school shooter left note plot ...

3 days ago
Most Popular

Swiss claim 1MDB fraud

By The Associated Press

Mexico's Industries seek U.S. Partner Co ...

By Rosalba Amezcua

Cuba to Lift Penalty on Dollar but Warns ...

By The Associated Press

Switzerland to Hand Venezuela Oil Firm B ...

By Reuters

Mexico and Germany Sign Agreement Suppor ...

By Notimex