Mexico gets used to the ‘new normal’ with Trump
As Donald Trump’s flurries of tweets recently strained diplomatic relations and promised to repatriate jobs, impose a big border tax and charge Mexico for his planned wall, gloom hung in the air.
But gradually, uncertainty became the new normal. Mexicans began to exhale. Officials found a way, finally, to stem the peso’s fall via a successful hedging programme that will save the central bank from having to dip into reserves to shore up the currency.
Wilbur Ross, US commerce secretary, talked about a “sensible” Nafta deal and even Trump’s hawkish top trade adviser, Peter Navarro, described Mexico as part of a North American manufacturing “powerhouse” — in stark contrast to the conflicting and often hostile comments about Nafta that Mexico had become used to hearing.
Source: Financial Times