Mexico’s peso wobbled as political risk grew with the approach of the country’s July presidential elections. It is interesting to see that the peso has not rallied with the surge in oil prices that began last year, even though it has roughly mirrored the downward trend in oil prices in recent years. The value of the peso against the dollar has steadily declined since its last major devaluation in late 1994 when President Ernesto Zedillo ordered the peso to float, scrapping a controlled exchange rate. Investors may be right to fret about the impact of politics on Mexico’s economy, since the country has plunged into crisis at every change in government for the last 25 years. This time, though, Zedillo has set up formidable economic defenses to ensure a smooth transition.