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US Presidential Election 2016: The Bank of Mexico is starting to get quite worried

Jake Cordell
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GOP Presidential Candidate Donald Trump Campaigns In Iowa
Donald Trump on the campaign trail (Source: Getty)

The Mexican central bank has warned that the US Presidential election is the biggest threat to Mexico's economy.

Around 80 per cent of Mexico's exports head across its northern border to the world's largest economy, and the country's policymakers have been growing increasingly nervous about what a Donald Trump presidency would mean for them as the 8 November ballot approaches.

The Mexican peso has proved highly susceptible to election news out of the US, with the currency weakening on good opinion polls for the Republican candidate and strengthening on news which shows the race for the White House could be heading Hillary Clinton's way.

Minutes from the Bank of Mexico's latest meeting, published this afternoon, revealed the central bank said the "US Presidential election and its possible consequences [are] the most immediate risk [which] could compromise financial stability."

A Mexican hotel worker campaigns against the controversial Republican Presidential candidate

Trump has notoriously pledged to build a 4m-high wall along the US-Mexico border in order to stop illegal immigration. He also said he will clamp down on illegal immigrants and undocumented Mexican workers living in the US. Both of which could threaten the close economic ties between the two nations, along with disrupt the flow of remittances from Mexicans working in the US.

The Bank of Mexico added: "Uncertainty about the results of the electoral process in the US and the effects this may have on the economy performance of our country" was the number one driving factor behind the "depreciation of the national currency."

All members of the Bank's interest rate-setting committee "stressed that concern has been derived from the US electoral process and its possible implications for Mexico, which could be particularly important."

City AM Who do you think will win the US Presidential Election?

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