What if the Republican candidate Donald Trump wins the USA election?
The election promises are a reality that is presented in the candidates for president of any nation. Their goal is to arouse some interest in the electorate, otherwise the process goes unnoticed. Therefore there is a bit of stridency. If we notice a little history, a year ago in the UK, during its electioneering, the Prime Minister David Cameron who was aspiring reelection perceived that the members of the right nationalist party UKIP (United Kingdom Independence Party) were defending the EU exit. He took that flag and promised a referendum before the 2017 year, and then Breixt occurred. Today this act of consultation has consequences in economic, social, and political, among others.
It is known that before consultation it had been generated in the UK population a lot of uncertainty , the winds of nationalism, the rejection of migration from other EU countries, financial resources wich were paid, which didn’t benefit the country, non-approval of remittances to countries of origin of migrants, if a parallelism is made, in the United States similar characteristics have been presented and other additives are added, such as building a wall along the border with Mexico, raising tariff to 35 % to vehicles sold by Mexico to the US, massively deportation of undocumented, they’re all variables that currently act in the stock exchanges of the two countries and others that do global businesses.
By the other side, the two nations share a trade balance of 121,985 million dollars, with a surplus for Mexico according to data from the Secretariat of Economy likewise the Governor of Mexico’s Bank, Agustin Carstens has said that the possibility that magnate wins the US elections is “implicitly ” reflected in the risk models of central bank. Moreover, it is believed that it could generate a drop in gross domestic product (GDP) of Mexico of around 4.9 % in the first year as a result of declines in exportations to the US and fall in private consumption of Mexico, the last as a result of lower remittances said Gabriela Siller, director of Financial Analysis BASE Bank this Wednesday. It’s said that Mexico would lose more than 25,000 million dollars a year by blocking remittances.
Now new measures in plenary phase of development in Mexico are added, the Secretary of Finance had already announced in previous days additional budget cuts for year 2016 of 31.7 billion pesos (1.7 billion dollars), in addition to cuts of 132 billion pesos previously announced this year and cuts of 175 billion pesos for year 2017. This is due to try to balance the balance of payments and also expect GDP growth of 2.0 %, joins the weakening of the currency against the dollar, there is a whole panorama of uncertainty, the investors, small and medium will try to find certain possibilities of protection in crypto-coins.
The question that citizens which feel affected can ask themselves. Is whether to seek new investment instruments because of what is happening, It may be mentioned, so far in 2016 the Mexican peso was the second emerging currency that has lost value against the US dollar with a depreciation of 3.04 %, according to Bloomberg. Most likely is that the Bitcoin cryptocurrency which in recent days have reached prices up to $ 675,35 per BTC become one of these instruments, to be used as a safe haven for investment for Mexican citizens to send money to their families and jump the barriers that may exist in the government of Trump. Expectations will continue influencing financial markets, uncertainty can in the early harm the stock exchanges in the first years, what can predicted with some possibility is that the Bitcoin continue beating their prices and become entrenched in preference as an investment instrument.
Disclaimer: The views expressed in this article are those of the author and do not necessarily represent the views, and should not be attributed to Infocoin.