MEXICO: Peso Off the Peg

As it must to all nations, the postwar problem of living within its means last week caught up with Mexico. Mexico's postwar hoard of $350 million in gold and foreign exchange had dwindled to $114 million. Furthermore, it was a state secret whether this was usable or whether it included the necessary backing for the nation's currency. Overnight, the peso, which for eight years had been exchangeable at 4.85 to the dollar, was cut adrift. In shops, the prices of imported goods which Mexico could no longer afford were boosted from 30...

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