The Mexican peso sees more trade than many advanced-nation currencies, and it is the most traded among those of emerging economies. 4 Additionally, the local debt market has become attractive to foreign holders, and this is beginning to be the case for foreign issuers as well.
There is, however, likely to be a noticeable effect across the December quarter last year and the current quarter. While it is still difficult to be precise, we estimate that the effects of the bushfires will reduce GDP growth by around 0.2 percentage points across the two quarters. We are also continuing to assess the effects of the drought on the economy.