Mexican Peso Increased to Highest Figure in 20 Months

The major currency of Mexico, Mexican Peso has increased to a figure that’s the highest in last 20 months as speculations are rife that the lawmakers are inching closer to a deal to approve a bill boosting competition in the telecommunications industry of the country. This has fueled optimism for legal reforms which can play an important role to bolster growth.

Mexican Peso increased by 0.3% and is currently at 12.1135 per USD. This is the strongest level of the currency since 9th August, 2011 on a closing basis. Among the most traded currencies across the world, Mexican Peso has posted the biggest gain against USD in 2013 and that is of 6.1%. Apart from that, Mexican Peso has increased by 22% against the major currency of Japan, Yen as well, in 2013.

The Senate committees are planning to vote on legislation which will ease dominance of the companies in the broadcast and telecommunication industry by 18th April. The news was announced by the Press Office of the Upper House. A version of this bill is part of a package of measures for boosting the growth and it was passed in the lower house in March.

The Latin American Currency Strategist of Bank of Nova Scotia, Eduardo Suarez, believes that the tone of the Federal Open Market Committee has hurt risk in general, but, Mexican Peso has got some sort of relief from the good news that came out of telecom bill front. He added that the combination of global liquidity and reform momentum is set to win.

The yield on the Mexican Peso bonds due in 2024 was more or less unchanged at 4.75% on today. The price experienced a decline of 0.08 Centavo and it is currently at 147.01 Centavos per Mexican Peso.

Incidentally, earlier on today, Mexican Peso tumbled as the minutes from the most recent market meeting of the US policy makers showed that an opposition senator would be backing portions of the proposal for a new industry regulator agency. However, CNNExpansion reported that telecommunications bill will pass, thereby increasing optimism.

The reforms of the country have already been outlined by the 3 biggest political parties of Mexico. The President Enrique Pena Nieto believes that Mexico’s economy will expand by 6% if the lawmakers approve those. A pact on these reforms was signed on 2nd December.