Mexico Denies Reports of Plans to Devalue Peso

Treasury Secretary Gusavo Petricioli Iturbide denied reports that the government is planning another big devaluation of the peso currency soon, claiming that such a measure would spur inflation even more.

“The country has a realistic exchange rate and an adequate system,” Petricioli told reporters Saturday, after meeting with top business and labor leaders in this capital of Chihuahua, one of Mexico’s richest states.

Business leaders have been complaining that the peso’s value, which is allowed to slip daily one to two points against the U.S. dollar, should be lowered even more to keep the country’s exports competitive in price, and this gave rise to rumors that another devaluation was imminent.