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Mexico finmin: Mexico well-placed to weather currency storm
January 24, 2014 / 6:26 PM / 4 years ago

Mexico finmin: Mexico well-placed to weather currency storm

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DAVOS, Switzerland, Jan 24 (Reuters) - The current volatility in currency markets will have some effect on Mexico, but without major disruption, Mexican Finance Minister Luis Videgaray said in an interview with Reuters Television.

"Mexico is an emerging market, so all volatility is going to have some effect, but Mexico is well-positioned to weather the currency storm," Videgaray told Reuters TV on the sidelines of a gathering of business and political elites in this Swiss mountain resort.

A full-scale flight from emerging market assets accelerated on Friday, setting global shares on course for their worst week this year and driving investors to safe-haven assets including U.S. Treasuries, the yen and gold.

Looking ahead, emerging markets are expected to face a volatile 2014 as the U.S. Federal Reserve scales back its stimulus programme.

"We expected this year to be a volatile year for EM as the Fed tapers," he said, adding that volatility "will happen throughout the year as tapering goes on."

The minister said Mexico's currency, the peso, was currently quite liquid.

Should that change, Mexico would consider intervening, he said.

"I don't see any problems of liquidity in the market for the Mexican peso," he said.

"We would intervene to provide liquidity in the market, but this is not the case now; the peso is quite liquid now."

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