Mexico’s central bank sold dollars in Mexico and New York on Thursday Jan. 5 to fight off the peso’s nose dive to record lows amid fears U.S. President-elect Donald Trump’s protectionist policies could further hammer Latin America’s second-biggest economy.
The central bank sold at least $1 billion in U.S. currency in morning trade, four traders told Reuters, asking not to be identified because they were not authorized to speak publicly.
The bank kept the amount confidential.
Mexico’s currency commission said in a separate statement that the move was aimed at providing liquidity and combating recent volatility in the peso, adding that it could not rule out further discretionary intervention to support the currency.
The dollar sales mark the bank’s first currency intervention since February 2016, when it sold $2 billion to prop up the sinking peso. The peso depreciated 20 percent last year alone and was among the world’s worst performing currencies.
Banco Base said in a report following the intervention that the decision was aimed at combating “speculative positions” that had built up against the peso.
Mexico’s peso MXN=MXN=D2 strengthened after the intervention was reported, but trade was choppy and it pared gains to trade flat around 21.48 per dollar after Trump threatened Toyota Motor Corp (7203.T) with a “big border tax” if it followed through on plans to build a new factory in Mexico to build cars for the U.S. market.
To read complete article click here.
more recommended stories
Yucatecan pelicans and flamingos on the brink of becoming endangered species
“Pelicans and flamingos are some of.
Teacher Leaders Present an Innovative Blueprint for Relevant Learning in the Age of AI
What does the fourth industrial revolution.
New technology used in Yucatán to find people lost at sea
As part of a third aspect.
“Pet uh” Civil Association aims to promote Peto, Yucatán
PETO.- In the coming weeks the.
Mexico overtakes Brazil as the largest automobile producer in Latin America
Mexico registered a new record in.
CICY Biofactory strengthens plant-multiplication technologies
With the aim of transferring the.
IYEM looking for entrepreneurs willing to form serious companies in Yucatan
Government and businessmen seek to continue.
Yucatán; the state with the lowest number of high-impact crimes in Mexico
The National Public Security System released.
Miami pedestrian bridge collapses, killing at least six people
A recently built, 950-ton pedestrian bridge.
Oil workers are being recruited to work in Campeche
The National Employment Service (SNE) in.