Mexico Peso Gains as Momentum Seen Growing for Economic Reform

Mexico’s peso advanced amid signs President Enrique Pena Nieto is moving toward passing legislation to bolster economic growth.

The peso rose 0.1 percent to 12.6966 per U.S. dollar at 9:36 a.m. in Mexico City, extending its rally this year to 1.2 percent. The peso climbed 8.4 percent in 2012.

“The political operation has been very strong, and the party remains united,” said Eduardo Suarez, a currency strategist at Bank of Nova Scotia in Toronto. “The president is strong within his party and willing to move forward.”

Local representatives of the ruling Institutional Revolutionary Party have agreed to bylaws changes to allow Pena Nieto to expand items covered by the nation’s value-added tax, Martin Takagui, a PRI deputy secretary for state relations, said by phone on Feb. 23. The party will consider final approval of the changes next month, Takagui said. Boosting tax collection is part of the president’s reform agenda that also includes opening the state-controlled oil industry to more private investment.

Yields on peso bonds due in 2024 were little changed at 5.06 percent, according to data compiled by Bloomberg.

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