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Mexican Peso Slumps Most in World After Campaign Finance Report

Mexican Peso Slumps Most in World After Campaign Finance Report

December 19, 2017, 11:01 AM EST

Mexico’s peso led losses among the world’s major currencies after a news report that the Finance Ministry had funneled money to campaigns for politicians from the ruling party.

The former finance minister of Chihuahua state, Jaime Herrera Corral, gave testimony on July 1 that the finance ministry had channeled as much as 250 million pesos ($13 million) to the PRI party in 2016, Reforma reported. The peso was also buffeted by Banxico governor Alejandro Diaz de Leon’s comments to Milenio TV that uncertainty surrounding Nafta renegotiations would dent the currency.

“The peso will remain sensitive to such political noise in general,” said Danny Fang, an analyst with Banco Bilbao Vizcaya Argentaria.

The Finance Ministry declined to make any remarks, and the PRI didn’t immediately respond to requests for a comment.

The peso fell 0.8 percent to 19.2351 at 11 a.m. in New York, erasing earlier gains.

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