Washington. Eduardo Valle, former aide to Interior Minister Jorge Carpizo, has given the Mexican government documents and testimony allegedly linking government officials and drug traffickers to the assassination of presidential candidate Colosio. The former official, who is known as "the owl", worked as a senior official directing Mexico's anti-drug efforts. He says that Colosio was murdered by members of the Grupo del Gulfo cocaine cartel, with the involvement of Colosio campaign officials close to Communications and Transportation Minister Emilio Gamboa. Included with the documents provided by Valle during testimony given at the Mexican consulate in Washington was a DEA report about telephone calls last December by cartel members to the offices of the presidency. (Whalen, p.2-4) Assassinations affect exchange rates due to the uncertainty that is caused. Many investors flee from the market if there is a risk of losing their investments. Without these investments, the economy begins to tumble downward due to increased unemployment and a lower demand for goods. This may cause the dollar to strengthen as the people move away from the uncertain peso. IV. Exchange rate See graph attachment. V. Devaluation of the Peso Due to the weaken peso, caused by constant printing of money and high inflation, Mexican investors took close to $11 billion dollars out of Mexico in a few days in December 1994. The political turmoil from regional insurrection to a string of assassinations and disrupted elections help cause the collapse of the peso, requiring a $20 billion bailout from the U.S. Treasury. The International Monetary Fund has pledged another $17.8 billion, while the central banks of other industrialized nations, acting through the Bank of International Settlements, are obligated for an additional $10 billion. (Banda) VI. Advantages/Disadvantages of Importing/Exporting Goods A Houston company exporting to Mexico will find some difficulty selling ...
