Efectos de la volatilidad cambiaria en la balanza comercial: 2002-2010

Intensity by the Nominal Exchange Rate volatility as a consequence of the recent economic crisis, has affected Mexican trade balance in different ways. It is usually thought that a depreciation of the MXN fosters competitiveness among exporters in the short term making it possible to reduce the trade deficit or to increase the trade surplus. Conversely, an appreciation of MXN will stir up imports since the MXN will have a higher purchasing power abroad. However, not all tradable goods react in the same way after changes in the Nominal Exchange Rate. For instance, it has been proved that manufacturing exports depend a lot more on the US economic performance. Knowing which tradable goods react more intensively after changes in the Nominal Exchange Rate in the short term could help to set a strategy to diminish Exchange Rate risk.