Question:

was it wise to cut ties between the peso and the dollar

by Guest3238  |  8 years, 10 month(s) ago

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was it wise to cut ties between the peso and the dollar

 Tags: cut, Dollar, peso, ties, Wise

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  1. Guest9981

     I do not think that it was of Mexico to cut peso from the U.S. dollar as today the value of the peso is very unstable, reflecting the economic and political instability of the countries.   The value of the peso was fixed to the dollar at a $1:2P rate and the U.S. dollar and Mexico's peso used to walk hand in hand before a variety of financial crises sent the Mexican currency reeling down.

    Many thought the peso overvalued and therefore the government decided to allow the peso to float in the world market and due to this the value of the peso dropped significantly.

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