Is for this reason that I wish to refer to two known coins at the regional level considering the following sentence which many already know: better bad known it is good to know. If we concentrate on the Mexican peso and the Brazilian real and look at the health of their economies, it seems clearly more likely that the Central Bank of Brazil with more advance the cycle starts ascending rates in relation to the prospects of the Bank of Mexico. Probably the exchange rate relationship between the dollar, the yen and the euro, are at a level that can be considered balanced. Do so in a context which is not expected for at least the remainder of the year, a vigorous recovery of their economies, or changes in monetary policy suggests that such exchange rate relations will be maintained with narrow ranges of variation. This allows you to evaluate the evolution of emerging currencies against the main international currencies with the simple evaluation of one of them. It is so if one pays attention to the current quotation of the Mexican peso against the dollar will find that it is located in the $13.5 per unit of the currency American, quite away from its peak of $9.87 in early August of 2008.
The weakness of the economy that does not seem to be reversed by a few months, forcing the Government of Felipe Calderon rehearsing a fiscal adjustment to prevent further compromise the situation of public accounts, makes it difficult to imagine a significant exchange rate appreciation which takes place in a short and even medium-term. Instead, in the case of the Brazilian real, the surprising recovery of the Brazilian economy suggests that not too far will be observe the start of the upward cycle of interest rates which are currently located in its historic low. The dollar in Brazil is located at these times around the R $ 1.79, away from 1,556 in early August of 2008 reais, level that is not pleasing to the authorities of the Central Bank of Brazil, who are determined to intervene in the foreign exchange market for curb pressures on its currency, provided that inflationary pressures remain contained and the market’s faith in the commitment of the Monetary Authority to price stability.
