LatinNews Daily - 23 March 2020

* Mexico’s President Andrés Manuel López Obrador has cautioned Mexico’s central bank (Banxico) against using Mexico’s international reserves to stop the depreciation of the Mexican peso due to the economic crisis caused by the coronavirus (Covid-19) pandemic and the fall in international oil prices (while declaring himself “respectful” of the bank’s autonomy). His remarks were made during a public event in Oaxaca state where he also warned against the threat of currency speculators. According to figures from Banxico, the exchange rate in 20 March was M$24.11/US$1 a new reccord low for the peso. On 20 March Banxico also cut its benchmark interest rate by 50 basis points to 6.50% to inject more liquidity into the domestic economy – a move it had previously planned to introduce on 26 March.

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