Mexico’s peso continued its steep decline against the U.S. dollar, falling to a record low of 21 to $1 on Friday, as Mexican officials prepared for a possible wave of Mexicans returning from the United States. The peso had already broken the psychological barrier of 20 to $1 earlier this week, following the victory of Donald Trump in the U.S. presidential elections. The Mexican currency fell by almost 13 percent this week, its steepest one-week drop in at least a decade.
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The peso traded as low as 21.26, before recovering slightly to an interbank rate of 20.95.
Authorities say the drop is due to global uncertainty following the U.S. election.
But Mexico has been hit particularly hard. Trump has criticized the North American Free Trade Agreement, which Mexico depends on.
He also promised to build a wall between the two nations and suggested high tariffs on Mexican goods, and suggested that people who entered the United States illegally will be deported.
On Friday, Interior Secretary Miguel Angel Osorio Chong signed an agreement with a leading business chamber to help find work for Mexicans who return to their country.
“We are broadening the alternatives for our countrymen who return, so that they can put their talent and characteristic effort to work on behalf of the communities and the development of their country,” Osorio Chong said.
Some Mexicans who are deported or return voluntarily don’t have valid identification documents in their home country, like voter registration cards.
The new effort encourages businesses to accept other types of identification.