MEXICO CITY, Oct 8 (Reuters) - Mexico’s finance minister urged the United States on Tuesday to reach an agreement on raising its debt ceiling, saying a failure to do so could seriously damage financial markets and the global economy.
“(This) has the potential to enormously affect financial markets and therefore not just the United States’ economy but also the economies of the rest of the world,” Finance Minister Luis Videgaray told Mexican radio.
“It’s an event that could be so serious that I think we all trust that the lawmakers and the executive of the United States will find the means to reach an agreement,” he added.
The U.S. Congress has so far failed to strike a deal to raise the government’s borrowing cap, which is set to expire on Oct. 17. Treasury officials have said hitting that limit and defaulting on government obligations could cause lasting harm to the United States’ international reputation.
Markets have been roiled and the dollar is near its recent eight-month low against other major currencies as U.S. lawmakers struggle to find a solution to both the debt ceiling and the government shutdown, now in its second week.
U.S. President Barack Obama has said a default on the country’s debts could have a major negative impact on the U.S. and world economies.
The United States is Mexico’s top trading partner, the destination of about 80 percent of Mexican exports.