Mexico is prepared for adverse scenarios: Videgaray

Luis Videgaray, Mexico's Minister of Finance, said that Mexico is prepared for "adverse scenarios" in the global economy.

"In January last year we reacted in a timely manner by cutting public spending,” Videgaray explained.

He acknowledged that the peso depreciation raises concerns, but explained that the drop "reflects what is happening in the world." Videgaray said that low oil prices and uncertainty about the Chinese economy are some of the factors that generate "this episode of risk aversion."

However, he said that Mexico is known by its responsible macroeconomic, monetary and tax policies and added that there is growth in the Mexican economy.

Videgaray said that the recovery of the peso will depend on the market behavior once the general risk aversion episode is over.