Multinationals Are Seeking Protection Against Mexican ‘Super Peso’
- Mexican peso only major to gain big against dollar this year
- Firms with a footprint in Mexico are facing higher costs
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For many US-based companies doing business in Mexico, the flip side of the boon in activity is the growing burden of a surging peso, raising the need for aggressive currency hedging strategies.
Multinational firms that moved operations to the US’s top trade partner — a trend known as nearshoring — are feeling squeezed as their exposure to the strong peso increases. For companies that move cash over the border, ranging from automotive suppliers to miners, that’s a reason to ramp up protections against swings in the currency.