MEXICO CITY, Feb. 21 (Xinhua) -- Mexico's central bank has seen delays in planned investments due to uncertainty about the future of the North American Free Trade Agreement (NAFTA), the bank's chief economist, Daniel Chiquiar, said on Wednesday.
Speaking at a financial summit, Chiquiar said the uncertainty surrounding NAFTA and the possible consequences of the commercial relationship between Mexico and the U.S. have been "severe" for investment.
"In the event that this uncertainty dissipates, we can hope the investment will return," he added.
Mexico, Canada and the United States have been renegotiating NAFTA since August at the behest of U.S. President Donald Trump, who believes the agreement has been detrimental to American jobs and the economy.
Negotiators will meet in Mexico City later this month for the seventh round of NAFTA talks.
Chiquiar said the Mexican economy has shown resilience to external shocks and is flexible enough to absorb negative impacts, especially to exchange rates.
If the trade relationship with the U.S. changes in the future, the economy will be capable of adjusting its pricing system to the new environment, he added.
In its latest monetary policy statement on Feb. 8, the central bank said the Mexican economy was facing a complex scenario, in large part due to economic and geopolitical risks threatening the global recovery.
