The Mexican peso is experiencing significant depreciation, with a reduction of 0.39% in the current trading session, following the death of influential drug lord Nemesio Oseguera Cervantes, known as ‘El Mencho’. The violence that erupted after his death has heightened risk aversion in the markets, increasing uncertainty about the potential impacts on Mexico's economic stability. Experts, including Gabriela Siller from Banco Base, highlight that such uncertainty can disrupt normal economic activity in the country.

Additionally, the current exchange rate stands at 17.20 pesos per dollar, which reflects an increase of seven cents compared to the previous Friday’s closure. The president of Mexico, Claudia Sheinbaum, has asserted that while concerns remain, the situation in Mexico is under control, with no road blockades reported on this day. She aims to reassure both citizens and investors that governance and safety prevail, stating, "Mexico is in peace, in calm."

The implications of this event extend beyond immediate market reactions; it underscores the intricate relationship between organized crime, state authority, and economic performance in Mexico. Monitoring the evolving situation remains critical, as both investors and policymakers assess the potential long-term effects on the Mexican economy arising from disruptions in governance related to drug-related violence.