The looming economy crisis in Latin America is becoming more apparent with new reports from Mexico and Venezuela. The national currency of Mexico showed signs of retail weakness as global markets plummeted due to concerns about reduced growth of the Chinese economy, and the price of crude oil produced in Venezuela, an OPEC member nation, fell well below $30.

The following reports are provided by Agencia EFE, the international news partner of The Costa Rica Star

Mexican peso falls to record low against the dollar

Mexico City, Jan 8 (EFE).– Mexico’s currency fell to a record low against the dollar due to uncertainty in global markets, although the peso was stronger relative to the greenback in interbank transactions.

In currency exchanges at the Mexico City International Airport, the peso slumped Thursday to as low as 18.06 against the dollar, while it traded at 18.05 at BBVA Bancomer and at 18.03 at Banamex and Santander’s Mexican unit.

The peso, however, was stronger relative to the dollar at some of the main currency houses in Mexico City, ranging from between 17.30 and 17.85.

The peso also remained below 18 to the greenback at Mexico’s central bank, although its value fell to 17.74.

Analyst Juan Musi told Milenio Television that the record low for the peso was mainly due to the “terribly uncertain moment” in global markets, which have been roiled in recent days by a stock market rout in China.

Risk-averse investors tend to seek the safety of the dollar during times of economic turmoil.

Concerns about the impact of an interest-rate hike by the U.S. Federal Reserve, which finally raised its benchmark rate last month for the first time in a decade, and low oil prices also have contributed to a sharp decline in the peso, which has fallen around 20 percent relative to the dollar over the past 12 months. EFE

Venezuelan crude falls to $27.87 a barrel, its lowest level in 11 years