Superweight is a consequence of high interest rates: Treasury

MEXICO CITY.- The Secretary of the Treasury, Rogelio Ramírez de la O, said that the current strength of the Mexican currency against the dollar is consequence of high interest rates that prevail as a result of the monetary policy of the Bank of Mexico as a measure to control inflation.

By participating in the AMIS Insurers Convention 2024, The official said that inflation has continued to decline in the country and is closer to the Central Bank’s target range when in September 2022 it reached its peak of 8.7%, while in the first half of March it stood at 4.5%. .

“12-month inflation expectations are already within the range of variability of the target inflation. The external sector remains in balance with moderate current account deficits and international reserves at historic highs. The exchange rate has been appreciating in recent years. I must add that our point of view is because of the high interest rate,” said the official.

Ramirez de la O He highlighted that from the end of 2021 to date, the peso has appreciated more than 20% and is at levels similar to those it had in 2015. In this environment, Ramírez de la O commented that in an environment of global risks, the The Mexican economy has maintained a solid performance with growth that in 2023 exceeded the country’s historical average for the third consecutive year and has favored job creation.

“We hope that this year maintains that dynamic. As has been a constant in recent years, growth is reflected in good results in the labor market. The first figures of the year show that the strength of the labor market has extended into 2024. During the month of February the unemployment rate remained at low levels of 2.5% at the same time there have been increasing levels of labor participation and a good pace of job creation,” he commented.