The most basic condition of free floating exchange rate.

First, there must be sufficient foreign exchange reserves; Second, export it has strong international competitiveness and can maintain a trade surplus; Third, the domestic economy is stable. The Mexican government is unprepared for these three conditions. Exchange rate fluctuations, especially the fragility of the economy, are extremely prominent. According to foreign investment and foreign debt, the trade deficit is very large. Although free floating exchange rate is a last resort, it will inevitably lead to crisis. If the Dorseco government is more aware of the impact of the trade deficit that has lasted for several years, exchange rate fluctuations will devalue the peso by 30%-50%, thus achieving the effect of restraining imports and promoting exports. Exchange rate fluctuations will not need to balance the foreign exchange market, and exchange rate fluctuations may not cause financial crisis. I'm afraid the key here lies in over-believing in the benefits of free floating exchange rate, while ignoring one's own abilities and conditions.