Re: money in Mexican banks
Posted by Don Binkley on September 24, 2008, 9:14 am, in reply to "Re: money in Mexican banks"
D if you got to read the email that I sent to you: the peso is based on oil!! I didn't know that myself but the article states that the gov't reserve bank skims of 60 percent of PEMEX earnings. |
When The Canatrell Oil Field Dries Up, So will the Peso.
Canatrell, Mexico's giant oilfield discovered in 1976 contained 35 billion
barrels of oil and production is declining. Since Mexico's federal budget relies
on its oil industry revenues, economic strain lies ahead which may lead more
Mexican immigrants to head towards the United States. The field peaked in 2005
at 2 million barrels a day and now production is down to 1.43 percent a day, a
30% decline. "This has extremely dire implications for the country's economy, as
the Mexican Peso is backed by oil. When oil revenues go up, so does the
When they go down, so does the peso. Now, as Mexico joins the growing list of
countries in oil production decline, revenues are projected to drop, not because of a low oil price, but because of lower
and lower production figures." -bink
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