FxWirePro: Daily Commodity Tracker - 21st March, 2022 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
India–U.S. Interim Trade Pact Cuts Auto Tariffs but Leaves Tesla Out 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
U.S. Stock Futures Rise as Markets Brace for Jobs and Inflation Data 
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient 
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom 
Mexico’s foreign trade (renegotiation of NAFTA) and immigration are likely to be impacted. Owing to the high budget deficit, fiscal policy has little leeway for economic stimuli.
The initial symptoms are visible in the balance of payments, with dwindling portfolio inflows and a likely slide in FDI putting downward pressure on the currency and domestic confidence. The Mexican peso slumped to nearly 22 pesos per USD which forced a direct intervention from Banxico.
Rating agencies have put Mexico’s sovereign-debt outlook into negative territory during 2016. Consequently the federal government has put in place many measures to improve public finances. These include spending cuts and the recently announced increases in transportation fuel prices. These adjustments will reduce disposable income and have a significant impact on inflation.
The Mexican government this week announced a plan to lure back undeclared capital held abroad. Individuals or companies with undeclared foreign holdings as of year-end 2016 will be able to repatriate funds at a preferential 8 percent tax rate. Prior to the announcement, individuals and companies repatriating resources were subject to income tax rates of 35 percent and 30 percent, respectively. The impact of such a measure is to be seen.
