MEXICO CITY (Reuters) – Mexican President Andres Manuel Lopez Obrador gave the U.S. greenback a vote on confidence on Monday after he was requested if a weakening buck would possibly spur a transfer to diversify Mexico’s international forex reserves.

“We’re going to proceed contemplating the greenback because the world’s principal forex,” Lopez Obrador advised a press convention.

“We now have ample causes to not transfer to different currencies,” he stated, underscoring Mexico’s “more and more shut” financial ties to the USA.

The US is by far Mexico’s largest buying and selling companion, with each economies carefully built-in over a long time in sectors starting from vitality, autos and agriculture.

The greenback remained weaker towards most of its main friends on Monday as fears persist a couple of potential recession in the USA later this yr.

Requested if he would advocate that the central financial institution diversify Mexico’s international forex reserves, Lopez Obrador stated that “even with a monetary disaster sooner or later, the greenback would proceed to be a very powerful forex on the planet”.

Regardless of considerations over recession, constructive financial indicators helped push Mexico’s peso on Friday to its strongest degree towards the greenback since 2017.

The Mexican president’s remarks observe feedback from Brazil’s President Luiz Inacio Lula da Silva, a fellow leftist, through which he expressed assist for a substitute for the U.S. greenback for commerce in sure circumstances together with inside South America.