Problems relating to Trade and Investment on Mexico
12. Exchange controls |
|||
Issue |
Issue details |
Requests |
Reference |
(1) Radical Exchange Fluctuations | - As it stands, member firm's subsidiary (MFS) benefits from exchange gain on a direct export transaction in yen. Nevertheless, negotiation for raise in price is difficult. In a transaction with its parent company, the prevailing Yen depreciation enables MFS to offer special prices to its customers. However, MFS runs on a thin margin, so that if the exchange rate swings toward appreciation of Yen, it will instantly show operational loss: such is the severity of the fluctuation band. | - It is requested that GOP takes step to hold the fluctuation band within a few percents in 6-months. | |
<<BACK |