LatinNews Regional Monitor: Mexico - 10 March 2020

* Mexico’s central bank (Banxico) has announced that it is increasing the amount of its US dollar auction programme in the domestic currency market from US$20bn to US$30bn in a bid to reduce exchange rate volatility. The announcement came after the value of the Mexican peso fell by 5.3% to M$21.18/US$1 on 9 March – falling below the M$20/US$1 threshold and just above the all-time low rate of M$21.93/US$1. The depreciation of the peso is in line with that of other emerging market currencies which have been losing value against the US dollar amid the growing concerns over the impact on the global economy of the coronavirus (Covid-19) outbreak and the sharp fall in international oil prices. A Banxico statement said that its currency commission had decided to increase the amount of dollars available for auction to “maintain the orderly operation of the exchange rate market”. It adds that the commission will monitor market conditions and take “additional actions” if necessary.  

End of preview - This article contains approximately 173 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial