Mexico's Finance Minister Jose Meade and central bank head Agustin Carstens have looked to calm markets after Republican Donald Trump's surprise victory sparked a massive selloff tanking the peso up to 13 percent in after-hours trading. Sonia Legg reports.
It may have been a global shock but it was Mexico's peso which took the full force of the blow from Trump's election win. It tumbled 13 percent against the dollar before expectations of intervention helped it recover by around a third. But it wasn't to be. (SOUNDBITE) (Spanish) MEXICAN FINANCE MINISTER, JOSE MEADE, SAYING: "These price movements have happened in a wide spectrum of currencies, assets and countries starting in the U.S. itself. The election result does not mean an immediate impact on trade agreements, finance flows, or the movement of people between the two countries." Trump's threatened to rip up a free trade agreement with Mexico. And tax money sent home by migrants to pay for building a wall along the southern U.S.border. As a result the peso's been battered by the election campaign. (SOUNDBITE) (English) PANMURE GORDON MARKET COMMENTATOR, DAVID BUIK, SAYING: "I don't think that a wall will ever be built. It's not practical, it sends out the wrong message to the rest of the world but what I think Donald Trump might do is be much, much tougher on immigration. I think we are seeing this around the world now." Mexican stocks fell 3 percent at the open. But the central bank pointed to inflation at 3 percent and within the desired range. (SOUNDBITE) (Spanish) MEXICAN FINANCE MINISTER, JOSE MEADE, SAYING: "We have international reserves of $175 billion dollars which is enough to cover peso debt held in Mexico by foreign investors. We also have a flexible credit line with the IMF of 86.2 billion pesos." Interest rates have also been raised three times already this year. Mexico may be keen to save its ammunition for something more than a threat.