Joe Biden’s $ 1.9 trillion tax packet, a good news for Mexico, will push up demand for export products, while imposing financial restraints on the country, Alejandro Díaz de León said. Banco.
In an interview with MILENIO, the headline of Banxico explained that his mayor’s economic activity provoked increases in the yield of EU Treasury bonuses and other government instruments, both of which interest rates and the type of emerging economies.
These alzas, añadió, are provocative in the last week adjustments of the peso front to the dollar and volatility in financial markets; sin embargo, el reto es que esos ajustes sean ordenados.
What is needed to boost recovery?
Ante the pandemic hooi que reduce contagios. Increase vacancies and availability, these key elements to accelerate the pace of a more normal economy, especially in sectors such as services, which have the presence and presence of the most affected.
The tax assessment in the United States will be an aid to the crime of our country. There is no doubt in the United States that what this guest can do is reflected in the following months and quarters or he will be in a longer period, but in the middle of which he will be staying and concentrating more on the court, he can be ten an additional effect or an estimate on economic activity.
These elements, together with the fact that the banks have solid balances, are well capitalized and have the ability to initiate financing, can also contribute to sustaining an economic recovery.
The President says that the minimum wage and pensions will be reduced by a margin, what impact will the economy and inflation have?
We understand that there is a very significant response in the minimum wage from many years ago and we consider that it is unacceptable that the minimum wage is linked to a necessary purchasing power for a family. In this sense, we identify that advancing in this direction is convenient.
You can always have different alternatives in terms of rhythm to close this gap, but we believe that the determination of a minimum wage that reflects in more ways the needs of the higher is adequate.
The ret is to find a rhythm that, by a lad, reconciles the things that its capable, which is the generation of the employee, as the fortuitous power of the acquired power for those who perceive this salary.
Banxico planto that the alza to the minimum wage should unite to an increase in productivity.
It should be noted that wage revisions in an economy tend to guard congruence with the crime in the productivity of the work, otherwise it will not be possible. It is a principle that must be present, but it can also have moments and circumstances in which the salaries are not necessarily reflected in productivity gains over a relatively prolonged period and accumulate a response.
This is part of the reto: identify the problem of the relationship and the space that is needed to close this breach without letting go of rebuilding the productivity of the work. It is an element to look up and identify and therefore a gradual recovery strategy in salaries can also be more sustainable.
What is your climate appreciation of business and investment?
It is very important to mandate clarification elements in terms of incentives for the inversion of large space, the most profitable projects, this is always a net, and more than the shock of the pandemic, where many sectors that increase profitability to the best ya no las tienen.
There are resources that require reorientation of one sector to another, as well as a financial recovery between projects and sectors that can be achieved more quickly, will be better. In this sense, the bank is playing a key factor in identifying the most profitable projects and restructuring the ones that can be affected in their initials.
The yield in the EU treasury bonuses, affecting Mexico?
The mayor’s outlook on the North American economy (according to the 1.9 trillion dollar package agreed by President Joe Biden) is also the expectation of an economically – credible mayor’s expectation and a possible 18-month increase in inflation a little more.
It is based on the revision of the mid-term and long-term positions in the United States and also puts pressure on the interests and types of change of emerging economies.
In Mexico, too, is the return on government benefits going to affect the cost of financing?
It is impossible to have a state-of-the-art economy that recovers with an important rhythm that can have a financial effect, but it should be noted that this mayor’s tax assessment will also be a mayor’s demand for the products that Mexico exports, mayors increase in exports.
The process has two components, one is the mayor’s activity and the other is an increase in interest rates; this combination for a drawer is a good notice, but for others it has a financial return.
The reason is that this adjustment (in interest rates) is the most orderly and of the minor quantity possible. In this sense, maintaining high risk premiums, such as inflation, as well as others, will help ensure that this content is the most potent.
Does it matter that in Mexico Bajarían the bags what did Banxico have this new entourage?
In terms of monetary policy, we must not compromise or pursue possible actions. In a volatile environment such as what we have been talking about, especially in the past, it is possible to hold the mayor’s information. This allows us to make a decision in better conditions.
Does the future hold a mayoral depreciation of the person?
The weight to be a month with a liquid, deep and free floating market reflects adjustments, in this case to the other.
The reto is that the process of the type of change is ordered. In 2020, the dollar will have to contribute 25 pesos and then have a regression of 19.90 this year, as long as we are adjusting and hoping to comply with normalization yields in the EU as well as normalizing the national currency.
Do you have inflation risks?
While the adjustments are in transition, they will not have a significant impact. In the midst of being the most persistent, there will be some type of translation to the prices of imported goods or the prices of these and international prices. While more orderly is the process of adjusting, we tend to lower pressure on inflation.