Small Exchange: Mexico jumps, China tightens, India delays

Peter Terlato 9 January 2017

international money

The week’s currency news rounded up.

Mexican peso bounces back briefly

The peso rose almost 1% against the US dollar last week after the central bank began selling dollars.

CNBNC reports the peso struck a record low on Wednesday, inciting the Banco de México to intervene.

The peso has been trading poorly since Donald Trump became US President-elect in early November 2016.

Trump has threatened the North American Free Trade Agreement, made a slew of racist comments about Mexicans and promises to build a wall along the southern US border, billing Mexico for costs.

The Mexican peso traded around 21.30 to the dollar last Thursday, up 0.8%.

China makes it tougher to convert yuan to foreign currency

The yuan continues to lose value against major currencies. In an effort to restrict outgoing capital, the Chinese government has been tightening rules governing foreign currency exchange.

When requesting foreign exchange, additional information must be provided to justify the transaction.

Currently Chinese individuals can convert up to US$50,000 worth of yuan to foreign currency each year.

The People’s Bank of China says these measures are aimed at preventing money laundering.

Want the best exchange rates when you travel? Compare international money transfer businesses.

RBI revises currency exchange deadline for non-residents

The Reserve Bank of India (RBI) has revised and extended the deadline for non-resident Indians to exchange outgoing bank notes of 500 and 1,000 rupees.

Any non-residents who were abroad when demonetisation was announced now have until 30 June 2017 to transfer their defunct cash to new currency, the RBI said in a statement.

Indian citizens, in the same position, will have until 31 March 2017 to exchange their old notes.

The deadline for most Indians to exchange the outgoing currency was 31 December 2016.

India’s new currency will be printed on polymer plastic notes. The new currency has stirred gossip and scandal, sparked a rally in bonds and spawned a slate of money-laundering networks.

Each week Small Exchange sums up currency news from around the globe and looks at how it impacts exchange rates and options.

Picture: Shutterstock

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