Mexican peso rate drops to historic low on the eve of Trump's inauguration

Baku. 19 January. REPORT.AZ/ Mexican peso exchange rate dropped to historic minimum, on the eve of inauguration of US President-elect Donald Trump.

Report informs citing the Bloomberg, MXN/USD ratio exceeded 22 on January 18.

Financial markets fear of Trump's anti-Mexican rhetoric led to decline in peso exchange rate. First of all, it creates uncertainty about the future of NAFTA free trade zone agreement, which is joined by the United States, Canada and Mexico.

Financial markets forecast that after Trump's inauguration, the US will reconsider trade agreements and take several protectionist decisions, which will cause prevention of globalization. This, in turn, may reduces volume of global trade and weaken global economic growth.