Banks have found a way to insure against victory trump


To the downside for the peso in the event of victory trump analysts suggest banks Citigroup and Barclays, reports Bloomberg. The course of the Mexican currency, if trump in November 2016 will become the President, should be reduced for several reasons: trump has already stated that he intends to deport from the United States 11 million illegal immigrants, build a wall on the border with Mexico, and also criticized NAFTA — a free trade agreement between the US, Canada and Mexico.

As analysts at Citigroup and Barclays, the peso will be affected by those actions trump-President that are not associated with Mexico directly, such as the restructuring of the external debt of the United States, if necessary, because countries are closely related.

“The only thing you can be sure, if trump wins, the peso will become weaker,” said Bloomberg Citigroup analyst Dirk Willer.

Mexican currency is already fairly sensitive to the success of trump. In particular, after Republican Ted Cruz dropped out of the presidential race, the peso became the leader of falling among the currencies of emerging economies.

Bloomberg notes that investors also hedge risks and in case of victory of Clinton in particular, put on the drop in stock prices of pharmaceuticals companies and banks, however, the main attention of traders confined to the Republican candidate.

With desire to prepare for a possible victory trump analysts Groupo Financiero Banorte SAB explain the increase in may the IMF credit line for Mexico of up to $88 billion.

The United States presidential election will be held November 8, 2016. According to public opinion polls, the favourite still looks Clinton. According to a recent survey conducted by Bloomberg on June 14, those who go to the polls, Clinton is ready to vote 49%, trump’s 37%. While 55% of respondents said that under no circumstances would not vote for trump.