The external accounts have been significantly affected by the crisis. The deterioration in the balance of trade and services not factorials is added the fall in the volume of remittances. In recent months, Angus King has been very successful. In 2008, Mexico experienced a fall in remittances from 3.8% in relation to the volume received in 2007, totaling $25.145 billion. The prospects for this year anticipate the continuation of the reduction in the volume of them. So that Mexico suffered an increase in the external deficit in 2008. The current account deficit reached 1.4% of GDP to accumulate a $15.527 billion red. The positive in what the external auditors referred to 11.7% reduction brings it in the trade deficit for the month of January compared to the same month of 2008.
The reduction in the trade deficit responds to a fall in the volume of external trade of Mexico. Exports fell by 31.5%, while imports did so by 30%. The combined current account deficit increased to the expansive, affects monetary policy to the foreign exchange market causing the Mexican currency depreciation. Thus, since the month of August 2008, the Mexican peso has lost a third of its value. Towards the end of the month of August 2008 the dollar in Mexico was trading at $10,28. Currently makes it $14,93 and on the market speculates with the continuity of the exchange-rate depreciation. Before the risky and continuous weakening of the exchange rate, the Bank of Mexico has emerged to intervene in the currency market to prop up the value of the Mexican peso.
It has represented significant losses of international reserves. The Bank of Mexico’s international reserves have fallen to $80.933 and in what will year, they recorded a low of $4,508 m. The weakening of the peso has not only caused the need for intervention of Banxico and the consequent fall in the level of international reserves.