There appears to be two schools of thought that have developed with respect to Mexico's currency. One school believes that the currency will decline against the U.S. dollar because as one executive put it, 'The U.S. economy has a history of outperforming the Mexican economy.' The other thought is that the Mexican dollar will be strong relative to the U.S. because "Mexico's economy is poised to perform better in the future," Use financial, economic, and regulatory data to make predictions regarding the long and short term prospects for a country's currency.
4 - 6 paragraphs
Foreign exchange refers to money denominated in the currency of another country. This market is essentially governed by the law of supply and demand and is generally not regulated by any government or coalition of governments. This is true in the U.S., where participation in the forex market is not regulated.
Mexico is a surprisingly strong economy. The efforts by the Mexican government to liberalize trade have resulted in a dramatic transformation of both the quantity and structure of trade. In terms of quantity, exports have increased eight-fold, from 20 to 160 US$Bn, and imports have increased over 10 times, from 14.5 to 170 US$Bn. Currently, exports represent over 30% of GDP. There has been s the elimination of most tariffs on goods and services relative to cross border trade due to NAFTA pact. The opportunities under NAFTA and FDI expansion mirror low cost in capital ...
This discusses the long and short term prospects for a country's currency