Reuters, 5/28/2012
Mexico will experience only a moderate economic hit if Greece leaves the euro and the peso should quickly bounce back from a recent slump without fanning inflation, central bank governor Agustin Carstens said on Monday.
Below are comments Carstens made at the Reuters Latin America Investment Summit.
HOW MUCH WILL CURRENCY VOLATILITY AFFECT INFLATION?
“I really think that there should not be a big inflationary impact.”
PESO FAIR VALUE
“I think that the current level of the exchange rate is very undervalued, it certainly does not correspond to the fundamentals of the Mexican economy. If we take into account the relative strengths of the Mexican economy with respect to the United States and other countries, this should be reflected in a stronger exchange rate.”
