Mexican peso slips on Pemex debt concerns


Mexico’s peso touched its lowest level in a month on Thursday after state oil firm Pemex came under pressure to make debt repayments.

Mexico’s peso slid 1%, hitting 20.23 against the dollar during the session. Mexico’s inflation forecast could be revised higher at the next meeting due to the impact of the Ukraine war, the central bank chief said.

Cash-strapped Petroleos Mexicanos is due to pay some 1 billion euros ($1 billion) to redeem a 2015 bond, two sources with knowledge of the matter told Reuters, despite President Andres Manuel Lopez Obrador’s promise that his government would pay them until 2024.

Pemex has struggled with years of declining crude production and in 2020 lost its coveted investment-grade debt rating. The state-run firm’s debt woes have impacted Mexico’s sovereign credit rating over the years.

Source: El Economista

Mexico Daily Post