American jobs and the Mexican peso.

By now you've heard the news: the Mexican peso has suffered a free fall. Analysts say the big losers are Mexican politicians and workers, U.S. citizens who opened bank accounts across the border to take advantage of higher interest rates and investors in mutual funds with assets in Mexico.

It's doubtful that many African-Americans fall into the aforementioned categories of people victimized by the fallen peso. Industry insiders, however, believe there is a reason all Americans should be concerned with the volatile fortunes of Mexico's currency, There are some, for example, who see the devaluation of the peso as an opportunity for investors who can wait out the expected recovery.

Traditionally, Mexican banks pay higher interest rates their American counterparts to attract foreign investment. The money made through those higher rates often offset any principal loses caused b a declining value of the peso principal loses caused by a declining value of the peso against the dollar. That strategy worked as long as the peso remained stable, and if investors were able to transfer their assets back into dollars before the value of the peso dropped.

"People did make money [by opening accounts in Mexico] in 1993. They got high interest rates and the peso losses against the dollar were modest. In 1994, that was not the case," explains Vivian Lewis, editor of Global Investing, a monthly newsletter published in New York.

By the end of 1994, the value of the peso tumbled 70%--it has since rebounded some--while the Mexican stock market declined drastically and interest rates soared. In January, the peso was worth 17.9 cents. Two weeks prior to that, the peso had been worth 28.9 cents. Mexican leaders rushed to present plans to stabilize their currency and prevent panic selling, but many people on Wall Street were not swayed.

Some analysts believe a weak peso, combined with the incentives offered by the controversial North American Free Trade Agreement between the United States and Canada, could encourage more American employers to take low wage jobs across the border.

"If the peso remains dirt cheap, as it is now, the impact on U.S. jobs will be considerable. People at the bottom will see their jobs going south," Lewis predicts. The loss of blue-collar jobs has historically hit African-Americans and other minorities hardest.

Some analysts, however, believe this is a good time to invest in Mexican holdings because of the low value of the peso, especially if you can stick with any investment for three to five years. "We expect a turnaround, mainly because of the infusion of cash from the U.S. and Canada," says Lloyd Pilgrim-Spooner, president of the Association for Minority Exporters & Importers Inc. The U.S. has agreed to loan its southern neighbor $9 billion and Canada has agreed to chip in $1 billion to help bailout the peso.

Few African-Americans are doing business in Mexico, Pilgrim-Spooner says, adding that those who are, aren't in the businesses that were heavily hit by the falling peso. "Most of them are in consumer goods, not in things like heavy machinery and construction."

RELATED ARTICLE: MANDELA DISMISSES BOESAK

Still battling to encourage foreign investment in South Africa, President Nelson Mandela recently requested the resignation of his ambassador-designate to the United Nations, Allan Boesak.

Boesak, a veteran anti-apartheid activist, was forced to resign after the media reported alleged misuse of funds donated to his Foundation for Peace and Justice.

According to published reports, about $830,000 of money donated to the foundation for charity projects was diverted for personal loans to Boesak and staff members of his foundation.