Tag Archives: carry trade

The Problem with Carry Trade Investments

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By THÉRÈSE MARGOLIS It’s been the financial lifesaver that has kept the Mexican economy afloat ever since leftist firebrand Andrés Manuel López Obrador (AMLO) took office as president in December 2018. The carry trade, a financial venture in which entrepreneurs borrow money in one country where interest rates are low to invest in second country where interest rates are high,

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Mexican Peso Strong, That’s Not Necessarily a Good Thing

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By THÉRÈSE MARGOLIS     Every time the Big Three international rating agencies downgrade the country or it’s state-run oil venture, Petróleos Mexicanos (Pemex), Mexican President Andrés Manuel López Obrador (AMLO) proudly points to the fact that the peso is doing well against the U.S. dollar, with a parity now below 19 to 1. And in most financial universes, a strong currency

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