The Mexican peso is poised for volatility during the upcoming years while financial markets throughout the world are uneasy in the face of the sovereign debt crisis, Bank of Mexico deputy governor Manuel Ramos Francia told Bloomberg late last week.
Latin America's most traded currency will be volatile for years rather than months, he told the news service in Colombia. The past 90 days have seen the peso drop 3 percent against the U.S. dollar.
"Given some of these periods of high volatility and uncertainty, at some point some currencies – and you have seen this pattern all over the emerging market economies – overshoot in terms of adjustment," the deputy governor told Bloomberg in Cartagena on Friday. "In that sense, sooner or later they come back to reflect fundamentals."
Mexico's gross domestic product, originally projected in May to develop as much as 4.25 percent this year, will grow as much as 4 percent, he said.
Since March, the monetary unit has decreased about 6 percent against the world's reserve currency, according to The Wall Street Journal.
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