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Donald Trump cited as risk as Mexico raises interest rates

MEXICO CITY -- The head of Mexico’s central bank says U.S. Republican candidate Donald Trump represents a “hurricane”-sized threat to Mexico.

Banco de Mexico Gov. Agustin Carstens told the Radio Formula network Friday that a Trump presidency “would be a hurricane and a particularly intense one if he fulfills what he has been saying in his campaign.”

Agustin Carstens, governor of the Bank of Mexico, attends the second day of the 79th Annual Convention of Bankers in Acapulco, Mexico, on March 11, 2016.
Agustin Carstens, governor of the Bank of Mexico, attends the second day of the 79th Annual Convention of Bankers in Acapulco, Mexico, on March 11, 2016. Pedro Pardo/AFP/Getty Images

Trump has proposed building a wall along the border and renegotiating the North American Free Trade Agreement.

Mexico’s central bank raised its prime lending rate by half a percent to 4.75 percent Thursday, citing “nervousness surrounding the possible consequences of the U.S. elections, whose implications for Mexico could be particularly significant.”

Mexico’s peso had lost about 6 percent in value against the dollar since mid-August. It recovered slightly after the rate hike.

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