“ For example, if it takes 11 Pesos to purchase one dollar, the midpoint would be 5.5. In other words if equalized unification of currency to the Amero, which the regional currency was named in 2006, the value of your money would be reduced by 200%.”
I’m no economist, but I call bull crap on this.
It also takes ten dollar bills to purchase one ten dollar bill. Equalization of currency doesn’t mean that a dollar bill now equals a ten dollar bill. It means they are tied together and move your and down in value together, So, in the peso example, if it takes 11 pesos now to equal one dollar, it would ALWAYS take 11 pesos, instead of changing over time.
I’m no economist, but I call bull crap on this.
It also takes ten dollar bills to purchase one ten dollar bill. Equalization of currency doesn’t mean that a dollar bill now equals a ten dollar bill. It means they are tied together and move your and down in value together, So, in the peso example, if it takes 11 pesos now to equal one dollar, it would ALWAYS take 11 pesos, instead of changing over time.
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I was hoping some economist type with knowledge of the bill would explain exactly what the bill requires. I have read several books on International Finance and International Monetary system, I couldn’t follow what the guy was trying to say.
It is true that currently, their is currency manipulation in the market. It is quite common for a currency to be devalued, and this makes their product cheaper for exports. The exchange rate does fluctuate. Usually, Central Banks try to keep within an established range.
So you might for example hear on the news, that Japan’s Central Bank took action to defend the dollar. I am assuming that the provisions in USMCA are aimed at stopping currency manipulations.
It is likely that some adjustment of the ratio of Canadian, Mexican, and US currency might occur at the initiation point, or else be phased in. So was hoping someone here knew the provisions in the bill.
Thanks for your opinion.