Conflict between the US and Iran has had minor effects on the rate of exchange and oil price: Herrera

Conflict between the US and Iran has had minor effects on the rate of exchange and oil price: Herrera

After Iran's attack on US bases, the rate of exchange jumped "but did not cross 19 pesos per dollar," said the Secretary of the Treasury.

After Iran's attack on US bases in Iraq, the Secretary of Finance and Public Credit (SHCP), Arturo Herrera, estimated that the conflict within the Middle East will have minor effects on the rate of exchange and therefore the price of the Mexican mixture of oil

"It has had two effects (exchange rate and oil), but i might say minor effects," he said in an interview at the top of the 31st Meeting of Ambassadors and Consuls organized by the Ministry of Foreign Affairs (SRE).

The official said there was alittle change on Tuesday at the rate of exchange "but it didn't even cross 19 pesos per dollar," while today it had been at 19.8 pesos per unit.

He added that albeit Mexico may be a country that desires harmonic development round the world, the conflict within the Middle East "has had a side effect that has not necessarily been bad" which is a rise within the price of the Mexican mix.

"Whenever there's a conflict within the Middle East , what's thought is that there could also be a decrease within the supply of oil and, in fact, this fact plus the OPEC issue, has led to the worth of the Mexican mixture being today almost at 57 dollars per barrel, "he said.

When questioned about the value of oil coverage for 2020, Herrera said they're very careful with the days of contracting the coverage.

"I can say it tomorrow," he said. On Thursday he will have a gathering with the Secretary General of the Organization for Economic Cooperation and Development (OECD), Ángel Gurría.

To an express question about his opinion that at the start of 2020 the downward revisions of the expansion prospects have already begun, the top of the Treasury responded that "it is just too early to start out reviewing economic expectations, there are two or three elements what to expect from this puzzle. "

Among these elements is that the public and personal investment which will be triggered by works tenders and conceptions to companies that don't necessarily imply public spending.

Another element - he added - has got to do with the consequences of the Treaty between Mexico, the us and Canada (T-MEC), since the trade agreement gives a plus to Mexico although he admitted that it's not enough to possess the treaty but that it's needed attract investment.

"The T-MEC puts us in far more favorable conditions than many economies but, as I even have acknowledged , the one that's signed and prepared to be finalized isn't enough, what we've to form sure is to require advantage of these opportunities and that we will need to have a look that investment, which will touch the Ministry of Economy and Chancellery, we've to expedite that investment, "he said.