Peso Hits Record Low as China Stock Market Plunges teleSUR
go to original August 24, 2015

China's benchmark Shanghai Composite index is down more than 8 percent in Monday trading. (Reuters)

The Mexican peso fell to a record low of 17.25 to the dollar Monday as the Chinese stock market posted its biggest one-day percentage loss since 2007 — by 8.4 percent.

The Shanghai Composite Index’s loss came one day after the government's approval to allow the state pension fund to invest in the stock market.

The move, which had been widely expected by the market, had been thought of as a way to stimulate stocks. State pension funds have combined assets of about 3.5 trillion yuan (US$550 billion), meaning as much as 1 trillion yuan (US$160 billion) could be invested in the stock market.    

The corresponding plunge in Mexico’s currency value occurred amid a broad selloff in emerging-markets currencies, driven by a sharp plunge in Chinese stocks.

Many emerging-markets economies, including Mexico, rely on Chinese companies to buy the commodities they export.

Read the rest at teleSUR

Related: New Enrique Peña Nieto Crisis? Mexico's Economic Malaise Continues Amid Peso's Fall (IBTimes)

Related: The World’s Richest People Lost Another $124 Billion on Monday (Bloomberg)

Related: China 'Black Monday' and Latin America: Brazil, Venezuela, Mexico Among Economies Showing Anxiety After Stock Market Meltdown (IBTimes)

Related: Mexico Central Bank Sells $200 Mln in Currency Auction (Reuters)

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