“Banco de México” Sells US$200 Million in Auction After Peso Hits Record Low

Mexican Central Bank (Photo: wtfrly.com)

The “Banco de México”, Mexico’s central bank said on Monday August 24th that it sold $200 million in an auction after a sharp drop in the peso to a record low.

The central bank sold dollars at a weighted average of 17.1518 pesos per dollar.

“Banco de México” offers $200 million whenever the peso slumps more than 1 percent from the previous day’s fix rate. It sells another $200 million every day without a minimum price trigger.

Mexico could further bolster its defense of the peso or raise interest rates ahead of its September monetary policy since the peso passed the 17 per dollar level, a Reuters poll showed earlier this month.


(Reporting by Miguel Gutierrez and Alexandra Alper)

Source: http://www.reuters.com/