How can it be that a country that has been growing at a percentage rate higher than the United States has a currency that is weaker than Ukraine, a frontier market that is busy fighting the Russians?
Many analysts blame the U.S. presidential election, as Business Insider pointed out on Thursday.That argument is as convenient as it is short lived. The peso has been in the tank since Mexico joined NAFTA back in 1994. Back then, one peso could purchase 32 cents. Today, the Mexican peso is worth five cents. The currency is down 12.5% against the dollar as of Thursday, while the Ukrainian hryvnia is down 7.7%. By comparison, Brazil and Russia currencies are up 18% and 13% respectively, and they are facing two years of recession and oil prices averaging under $45 a barrel.