Donald Trump cited as risk as Mexico raises interest rates
MEXICO CITY -- The head of Mexico’s central bank says U.S. Republican candidate Donald Trump represents a “hurricane”-sized threat to Mexico.
Banco de Mexico Gov. Agustin Carstens told the Radio Formula network Friday that a Trump presidency “would be a hurricane and a particularly intense one if he fulfills what he has been saying in his campaign.”
Trump has proposed building a wall along the border and renegotiating the North American Free Trade Agreement.
Mexico’s central bank raised its prime lending rate by half a percent to 4.75 percent Thursday, citing “nervousness surrounding the possible consequences of the U.S. elections, whose implications for Mexico could be particularly significant.”
Mexico’s peso had lost about 6 percent in value against the dollar since mid-August. It recovered slightly after the rate hike.